Australian Dollar Approaching key Support Area
Axi | Jul 07, 2017 13:23
Originally published by AxiTrader
EUR/JPY is approaching a major resistance level at 130. Despite the strong momentum, this hurdle will not be an easy one to overcome. Negative RSI divergence on the hourlies suggests that a correction will occur before the uptrend continues. Keep an eye on the key support area between 127.85 and 128.00.
The downtrend in USD/CAD remains intact, although the currency pair looks fairly oversold in the near-term. WTI is again under pressure, which could help it though. A break above 1.3040/50 resistance would signal that USD/CAD has a chance to test the key area between 1.3150 and 1.3180. However, Canadian dollar bulls will likely have decent selling interest there.
USD/JPY has been consolidating in the past few days, and volatility is unlikely to jump higher ahead of the NFP release this evening. Keep an eye on the falling trendline from the December 2016 high - former resistance has now become support. Below that, we have the 21, 55, 100 and 200 DMAs in the area between 111.50 and 111.80. That one should act as strong support in case it gets tested.
AUD/USD has strong support around 0.7520-30. The 200 DMA lies there, and 0.7520 is the 50 % Fibo of the May rally. The short-term outlook is rather mixed from a tech perspective. A clear break below 0.7520/30 would suggest thought that AUD/USD is again in a downtrend and that we might see another test of 0.73 support in the near-term.
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