|Day's range||0.737 - 0.741|
|52-week range||0.7349 - 0.8136|
The Australian dollar fell significantly during the trading session on Tuesday, as it was announced that the United States was slapping more tariffs on the Chinese. Obviously, Beijing will retaliate, as we continue to see tit-for-tat trade tariffs become headlines.
The direction of the Australian and New Zealand Dollars will be largely influenced by demand for risk. Look for a short-covering rally if it’s a risk-on day. Watch for further selling pressure and an extension of this week’s losses if it’s a risk-off session.
Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at .7398. The AUD/USD is down 10 session from its last main top so it may be ripe for a short-covering rally.
Japan’s yen and the U.S. dollar strengthened against their major rivals on Tuesday, as the escalating trade conflict between the world’s two biggest economies sent investors scrambling for safer assets. Trade tensions between the U.S. and China were already heightened, when President Donald Trump threatened to slap new import levies on up to $400 billion of Chinese goods late Monday, on top of the $50 billion his administration has already detailed. China responded on Tuesday, saying Beijing will have no choice but to take comprehensive measures in response to the U.S.’s trade moves.
The pair staged lower at the open in the Monday’s session due to some political concerns emerging out of Europe with news about Angela Markel being ousted. The 1.17 level above is massively resistive and as well as 1.18 level which the market needs to clear above in order to reverse the bearish sentiment. The 1.30 level underneath is going to be a massive support level.
EURUSD continues falling and updating its short-term lows. The point is that investors are once again in search of “safe haven” assets because global “trade wars” are reviving.
The Australian dollar has been somewhat sideways to open the week on Monday, as we continue to hug just below the 0.75 level. That of course is a large come around, psychologically significant figure, and of course an area that the market would have been paying attention to.
Lingering concerns over the US-China trade dispute could continue to pressure the AUD/USD and NZD/USD or at the least limit their upside potential if there is a short-covering rally. The fact that both Forex pairs haven’t “crashed” suggests that investors feel that some solution will be reached as long as both parties are still at the negotiation table.
The pair managed to reverse its positions in the Friday’s session after falling vehemently the previous session post the announcement from ECB. The market looks very concerned about the trade wars and its effect on the global trade scenario.
The bias is to the downside because the trend is down, however, if there isn’t any may news regarding US-China trade relations, traders may take the opportunity to book some profits and perhaps form a short-term bottom due to oversold technical conditions.
Based on Friday’s close at .7443, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .7447.
Based on Friday’s close at .7443, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the former bottom at .7448.
The Australian dollar fell significantly during the week, crashing through a short-term uptrend line, and then of course the psychologically important 0.75 level underneath. We did not break below the bottom of the hammers from last month, but at this point it’s likely that closing as low as we did signify that we are going to.
The Australian dollar has initially tried to rally during the day on Friday, but then fell significantly down to the 0.7450 level. I believe that the market should continue to be negative overall as we are starting to see tariffs expand between the United States and China.
The Euro fell hard during the yesterday’s session wiping out the entire up move after ECB announced that it is not going to change the interest rate and cutting the QE by only half, which was the big dampener for the market. The British Pound initially rallied a bit but fell hard afterwards in the yesterday’s session after the ECB announcement came. The AUD fell hard during the yesterday’s session reaching towards its major trend line as the market turned negative due to the knock-on effect of ECB announcement.
The Australian dollar fell during the trading session on Thursday, reaching towards a major trendline, but as I record this it looks as if we are going to find buyers underneath. I think that if we can hold this trendline, it’s likely that we will continue to go higher.
Based on the early price action of Friday, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to yesterday’s close at .7477.
With four-month old descending trend-line restricting AUDUSD’s upside, the pair had no choice but to dip towards immediate TL support, at 0.7515 now, break of which could further drag it to 0.7470 & 0.7445 rest-points. In case if the pair continues declining below 0.7445, the 0.7410 may act as a halt during its plunge to 61.8% FE level of 0.7320. On the upside, the 0.7610 and the 0.7660, comprising aforementioned resistance-line, could limit the pair’s near-term advances, clearing which 0.7700 & 200-day SMA level of 0.7745 may gain traders’ attention. ...
The Euro had a very quiet trading session on Wednesday, hanging around the 1.1750 level as the market is looking for some kind of momentum to push the market higher. The market in due course will remain volatile and will be looking towards Federal Reserve on the issue of further interest rate hike. The British Pound fell significantly during the yesterday’s session reaching towards the 1.33 level, which was earlier a resistance level as the market was looking for FOMC statement on late Wednesday.
During the session on Wednesday, we are looking at a market that is trying to rally from the 0.7550 level, an area that has been supported in the past. The market has been very noisy, and as we await the FOMC statement. That is a major driver of the US dollar going forward, and I think that although we have already priced in a bit of hawkish sentiment, traders are being very cautious ahead of the announcement.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .7544.
Also, the market is looking forward to the outcome of ECB meeting on Thursday, that could determine the future of QE. EU walking away from the QE will definitely push this market higher towards the 1.20 level. The British Pound rallied a bit during the Tuesday’s session but got enough resistance around the 1.3425 level and fall significantly wiping out the entire up-move.
The Aussie dollar has been noisy during the day on Tuesday, initially falling but finding enough support at the 0.76 level to bounce a bit and grind a slightly higher. I believe that the market is trying to find its footing right now, and based upon the weekly chart, we are still very well support underneath.
The Euro rallied slightly during the Monday’s session due to the positive developments coming out from Italy as it is leaning towards staying in the common currency which is a huge boost to the Euro. The market is also looking towards the historic North Korea-US summit, which will make this market dance. In the long term, the market is expected to continue bullish with a target of 1.1850 and 1.20 on the top. …Read MoreGBP/USD
The Australian dollar has gone sideways during the Monday session, dancing around the 0.76 level. This is a market that has recently shown a significant amount of support, and I think that will be a great way to play overall risk appetite over the next several days.