Aussie Dollar Likely To Resume Rally Soon
Axi | Aug 03, 2017 09:33
Originally published by AxiTrader
The euro is unstoppable. While EUR/USD struggled to maintain momentum above 1.19 today, a test of major resistance at 1.20 seems likely in the near-term. To the downside, expect initial support at the lower channel trendline, followed by strong support in the area between 1.1775 and 1.1790.
AUD/USD was rejected at 0.8070 resistance and rejected some of the recent gains. However, the Australian dollar remains well bid and further gains seem likely. Expect decent support near the 23.6 % Fibo of the May-July rally at 0.7890, followed by 0.7840 (former key resistance).
USD/JPY is currently within a strong downtrend. Support at 110.00 failed to hold initially, but positive risk sentiment gave the currency pair a boost later in the session. The short-term outlook is negative and the break sub-110 signals a correction to at least 108.
In GBP/USD, we must zoom out to the weekly chart to identify the next major resistance level - which lies around 1.3440. The charts suggest that further gains are ahead, but it is questionable if the pound rally is sustainable. The Bank of England meeting on Thursday could determine the short-term direction.
The kiwi is showing first signs of weakness and is approaching a key support area between 0.7375 and 0.74. A clear break below that area would confirm the top at 0.7560 and pave the way for a retracement to at least 0.72.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.