EUR/USD
Even if profit-booking moves dragged EURUSD from 1.1490, pair’s bounce from 1.1370 horizontal-line, coupled with short-term ascending trend-channel, continue pleasing the Bulls. However, scheduled release of US CPI & Retail Sales become crucial for traders to wait for. Given the US data-points continue disappointing greenback optimists, the 1.1440 and the channel-resistance figure of 1.1500 might offer intermediate halts prior to propelling the quote towards 61.8% FE level of 1.1515. In case if buyers rule the upside momentum with 1.1515 break, the 1.1535 and the May 2016 high of 1.1620 can please them. On the contrary, upbeat consumer-centric numbers from US could fetch the pair to dip below 1.1370 horizontal-line and test 1.1345 channel-support, breaking which chances of its extended decline towards 1.1280 can’t be denied. Should there be increased selling pressure after 1.1280, the 1.1200 and the 1.1160 can be considered as good supports.
USD/JPY
USDJPY’s U-turn from 112.80 couldn’t surpass 113.60 and is presently indicating three-week old ascending trend-line re-test, at 113.00, which is close to 112.80 support-line. Given the pair’s sustained break of 112.80, the 112.45 and the 111.80-70 should gain traders’ attention. If at all the pair clears 111.70, it becomes vulnerable to plunge towards 110.65-60 rest-point. Meanwhile, the 113.60 acts as immediate resistance for the pair, breaking which 114.00 and the 114.50 can be watched closely. Moreover, successful break of 114.50 enables the buyers to aim for 61.8% FE level of 115.10 and then the 115.45-50 resistance-zone.
AUD/USD
Break of 0.7745-50 horizontal-line presently signals the AUDUSD’s extended upward trajectory towards 61.8% FE level of 0.7780 and then to the 0.7810 resistances. However, overbought RSI and expectedly upbeat US economics might generate a surprise and pullback the pair then after. If not, then it becomes wise to expect the 0.7840 and the 0.7860 to appear on the chart. Alternatively, 0.7730 and the 0.7690 should entertain counter-trend traders, breaking which 0.7630 and a month-old ascending TL, at 0.7600 becomes important. In case of the pair’s daily closing below 0.7600, the 0.7560 and the 0.7530-25 support-confluence, which includes 50-day & 200-day SMAs, could try limiting further downside.
Cheers and Safe Trading,
Anil Panchal
This article was originally posted on FX Empire