EUR, JPY Dip as Rebound in Risk Sentiment Lifts AUD, CAD
- EURUSD slides back towards $1.1150.
- AUDUSD covering rally takes it back to its daily 5-EMA.
- See the September forex seasonality report.
The key reversal that appeared on the USDOLLAR's H4 chart yesterday has proved to be the marking of a short-term top, with the broader gauge of greenback strength slipping back to its low from Friday after the August US labor market report. However, the broader uptrend remains intact, with both the daily and weekly MACD and Stochastics sitting in bullish territory. Given the nature of the decline (and the covering moves seen in AUDUSD and GBPUSD), there could be a 'buy the dip' opportunity around the corner - for maybe the last time before the September 17 FOMC meeting.
See the above video for technical considerations in EURUSD, AUDUSD, USDCAD, and the USDOLLAR Index.
--- Written by Christopher Vecchio, Currency Strategist
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