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.

Free Trading Guides
Oil - US Crude
More View more

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.87%, while traders in France 40 are at opposite extremes with 81.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oMqXKRmxpn
  • $EURUSD Daily Pivot Points: S3: 1.0847 S2: 1.0936 S1: 1.0969 R1: 1.1058 R2: 1.1115 R3: 1.1204 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • US Equities Update (Tuesday Close): $DJI +0.11% $SPX +0.25% $NDX +0.46% $RTY -0.38% $VIX -1.70%
  • #Brent: A break above $69.34 could push the price for a test of yesterday’s High at $71.03. Get your technical analysis from @malkudsi here: https://t.co/QE5zVInhPb #OOTT https://t.co/xQhpDP0UdB
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.08% France 40: 0.03% US 500: 0.01% Wall Street: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Q0YYr8lAED
  • There is a significant disparity in US equity performance ($DJIA, green) and 'rest of world' ($VEU, blue). The global measure ($ACWI, candle) though presents the most impressive technical picture https://t.co/yCsUxO1xnK
  • Heads Up:🇺🇸 USD Net Long-term TIC Flows (JUL) due at 20:00 GMT (15min), Actual: N/A Expected: N/A Previous: $99.1b https://www.dailyfx.com/economic-calendar#2019-09-17
  • The US Citi Economic Surprise Index rises to 26.1 after Industrial and Manufacturing production beat estimates $DXY https://t.co/lMQTVylxUh
  • RT @Amena__Bakr: Prince Abdelaziz is urging countries to “help themselves” by aiding aramco fight threats #OOTT
  • US Treasury Yields Update: 2-Year: 1.733% 3-Year: 1.680% 5-Year: 1.659% 7-Year: 1.744% 10-Year: 1.803% 30-Year: 2.269% $TNX
AUDUSD & AUDJPY at Critical Spots on Charts with Trade War Weighing

AUDUSD & AUDJPY at Critical Spots on Charts with Trade War Weighing

2019-05-06 11:00:00
Paul Robinson, Currency Strategist

AUDUSD/AUDJPY Chart Highlights:

  • AUDUSD is flirting with a full break of the 7000 level
  • AUDJPY is currently outside of multi-month range

To see what fundamental drivers and technical signposts DailyFX analysts are watching, check out the Q2 forecasts for various markets on the DailyFX Trading Guides page.

AUDUSD is flirting with a full break of the 7000 level

Over the weekend, the Trade War between the U.S. and China took another turn for the worse, which has the risk-trade moving in reverse and potentially on the verge of causing a key break in Aussie. The 7000 level is no secret as being an important one.

It marks a few lows as well as the bottom of a big-picture descending wedge when you take out the blip that was the January flash-crash in JPY and other currencies that responded in sympathy. The gap to start the week isn’t how you necessarily want to see a breakdown develop given the propensity for weekend gaps in FX to get filled, but nevertheless the vulnerability of the 7000-line is becoming increasingly exposed.

A solid close into the 6900s could soon set off a trend lower that will have price eventually testing the flash-crash levels down in the 6700s, or worse. This week may turn out to be that pivotal point in time where the path of least resistance (lower) becomes clear.

A bounce that keeps AUDUSD still in play above 7000 may carry up towards the downward sloping line of the descending wedge & 200-day, but the broader trend and price pattern will continue to keep pressure on. It will take significant work to turn the outlook for Aussie bullish.

AUDUSD Daily Chart (Descending wedge, 7000 level)

AUDUSD daily chart, descending wedge, 7000 level

AUDJPY is currently outside of multi-month range

AUDJPY has been a tricky pair for some time now, by either just spending time creating a well-defined range and thus keeping trading conditions or head-faking traders on the long-side as it did recently when it briefly broke the range. The top-side breakout ran into problems around the 200-day immediately following and given it was against the longer-term trend it didn’t have the most appeal.

However, with the head-fake higher and now possible breakdown out the bottom of the range (which is in-line with the long-term trend), AUDJPY could be on the verge of a sustainable move. Again, the gap isn’t ideal and so a push back inside the range may develop. But if sustained trade below the multi-month range is maintained, then look for weakness to carry the cross-rate lower into flash-crash territory in the low-7000s.

AUDJPY Daily Chart (working on breaking range)

AUDJPY daily chart, working on breaking range

Forex & CFD Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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


News & Analysis at your fingertips.