News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6cn6OK6M7w
  • RT @Stephanie_Link: 84% of $SPX companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since 2008…
  • What is #NFP and how can you trade it? Find out: https://t.co/XJWS04IF9j https://t.co/iV9lPzPDtc
  • What does it mean when one candle fully engulfs the previous in its price action? The bullish engulfing candle is one of the forex market?€?s most clear-cut price action signals. Figure out how to identify this pattern here: https://t.co/Yg6ecRZZNr https://t.co/3J0xXp4axT
  • Oil maintains a medium-term bullish outlook, but its overbought condition and price's proximity to key technical resistance may pave the way for a brief pullback before the next leg higher. Get your weekly oil forecast from @DColmanFX here: https://t.co/sv2bMc34gI https://t.co/DDIoe4VhZ3
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/P3SduerCFF
  • The update to the US GDP report may keep the Greenback under pressure as signs of a slowing recovery undermines speculation for an imminent shift in Fed policy. Get your weekly USD forecast from @DavidJSong here: https://t.co/xvLr1bLfZG https://t.co/aQnOIoUM9t
  • There a many different trading styles that can be applied to trading forex. Learn about different types of traders here: https://t.co/xfzRCzuuKK https://t.co/GXxdkNEeCg
  • Hang Seng Tech Index has likely formed a bullish “Inverse Head and Shoulders” chart pattern. Immediate support and resistance levels can be found at 5,800 and 7,433 respectively. Breaching above 7,433 would likely bring 8,266 into focus. https://t.co/VsavFLj97V
  • The Nasdaq 100 index has likely formed a bullish “Butterfly” chart pattern, which hints at further gains. The MACD indicator is about to form a bearish crossover, suggesting that upward momentum may be weakening and thus vulnerable to a short-term pullback. https://t.co/J0PFLYzXR1
Australian Dollar Forecast: AUD/USD Breaks Technical Barrier, Upside for AUD/CHF

Australian Dollar Forecast: AUD/USD Breaks Technical Barrier, Upside for AUD/CHF

Justin McQueen, Strategist

AUDUSD, AUD/JPY, AUD/CHF Analysis & News

  • AUD Breakout As Resistance is Cleared
  • AUD/CHF Has Catching Up to Do
  • AU Jobs and US CPI In Focus

On Friday, we discussed the potential for the Australian Dollar to break out and now that pivotal resistance (0.7300-20) has been broken, AUD bulls can take some comfort. Overnight, sizeable gains in iron ore underpinned the gains in Aussie, while Sydney emerging from a near four-month lockdown has helped improve the mood music. To add to this, given that speculators continue to hold a large short position in Aussie, risks are geared towards a short squeeze. On the tech side, having broken above resistance, a close above 0.7320 will be key.

AUD/USD Chart: Daily Time Frame

Australian Dollar Forecast: AUD/USD Breaks Technical Barrier, Upside for AUD/CHF

Source: Refinitv

The Swiss Franc Remains Resilient

Elsewhere, as global bond yields continue to tick higher, AUD/JPY soared to a three month high, however, what is slightly bemusing is the more muted gains in AUD/CHF. Resistance at 0.6800 continues to hold for now, although, as risks remain tilted to the upside on global bond yields, I favour further upside in AUD/CHF. That said, the concern for the cross would be a deterioration across equity markets.

AUD/JPY vs AUD/CHF

Australian Dollar Forecast: AUD/USD Breaks Technical Barrier, Upside for AUD/CHF

Source: Refinitiv

Looking ahead, domestic data in the form of the Australian jobs reports will be in focus for Aussie traders, while the main highlight will be the US CPI report. In turn, given the markets increasing concern over stagflation risks a softer report will see the USD underperform across the board.

DailyFX Calendar

Australian Dollar Forecast: AUD/USD Breaks Technical Barrier, Upside for AUD/CHF

Source: DailyFX

IG Client Sentiment Shifts Signal Mixed AUD/USD Outlook

Data shows 52.36% of traders are net-long with the ratio of traders long to short at 1.10 to 1. The number of traders net-long is 2.93% higher than yesterday and 0.08% higher from last week, while the number of traders net-short is 2.45% higher than yesterday and 0.09% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/USD prices may continue to fall.

Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed AUD/USD trading bias.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES