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.

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
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 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/x8uyOHLtgE
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/CaMR0Vqd1m
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/toSDbVZCSi
  • The global stock market can be categorized into specific groups or ‘stock market sectors’. Organizing the vast number of stocks in this way helps traders to view assets in a more manageable way. Get your stock market sectors basics here: https://t.co/5gbiHmY8yl https://t.co/mQ6ty8Yalv
  • The Euro looks poised to continue gaining ground against haven-associated currencies and may reverse higher against the British Pound in the near term. Get your #Euro market update from @DanielGMoss here:https://t.co/oRIHju7ZzK https://t.co/dIEErVzWEY
  • Gold and silver prices have come under significant pressure recently. However, this correction lower could prove short-lived as price analysis hints at a reversal higher. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/K1qL0fsGwy https://t.co/tRfjlN6X22
  • The S&P 500, Dow Jones and crude oil prices have recently made critical advances to the upside. Is retail positioning supporting the case for further upside momentum?https://t.co/rfA2TsBctB https://t.co/SNoOEVLXvA
  • An improving economic backdrop is bolstering crude oil prices and in turn, the Canadian Dollar. Still, the risk-sensitive Australian Dollar continues to move higher. Get your market update from @FxWestwater here:https://t.co/NJ683bZKpe https://t.co/zt3bYddjZ6
  • Gold Price Forecast: Dovish FOMC Could Underpin Bullion Ahead of NFP - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/11/27/Gold-Price-Forecast-Dovish-FOMC-Could-Underpin-Bullion-Ahead-of-NFP.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr #Gold #XAUUSD $GOLD $GLD https://t.co/N9ChZOqSdy
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.42% 🇦🇺AUD: 0.35% 🇳🇿NZD: 0.30% 🇨🇦CAD: 0.20% 🇯🇵JPY: 0.16% 🇬🇧GBP: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4uyJxc09OH
Australian Dollar Tests Key Resistance- Euro Heavy Despite USD Losses

Australian Dollar Tests Key Resistance- Euro Heavy Despite USD Losses

2012-01-20 15:54:00
Michael Boutros, Strategist
Share:

Daily Winners and Losers

Australian_Dollar_Tests_Key_Resistance-_Euro_Heavy_Despite_USD_Losses_body_Picture_2.png, Australian Dollar Tests Key Resistance- Euro Heavy Despite USD LossesAustralian_Dollar_Tests_Key_Resistance-_Euro_Heavy_Despite_USD_Losses_body_Picture_3.png, Australian Dollar Tests Key Resistance- Euro Heavy Despite USD LossesAustralian_Dollar_Tests_Key_Resistance-_Euro_Heavy_Despite_USD_Losses_body_Picture_4.png, Australian Dollar Tests Key Resistance- Euro Heavy Despite USD Losses

The Australian dollar is the top performing currency against a weaker greenback in early US trade with an advance of 0.43% on the session. Risk appetite improved at the open of trade in New York with the dollar coming under pressure as higher yielding assets advanced with the aussie breaching trendline resistance dating back to the January 17rd high before finding solace at trendline resistance dating back to the January 3rdt high. A breach here eyes subsequent ceilings at the 100% Fibonacci extension taken from the December 29th and January 8th troughs at 1.0485 and the 1.05-handle. A breach here risks substantial losses for the greenback as it would confirm a break above long-term daily trendline resistance dating back to the 2011 highs. Interim support now rests at 1.0450 backed by 1.0420 and the 76.4% extension at 1.0405.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.0407

100-Day SMA

1.0165

50-Day SMA

1.0139

2011 AUD High

1.1079

Australian_Dollar_Tests_Key_Resistance-_Euro_Heavy_Despite_USD_Losses_body_Picture_5.png, Australian Dollar Tests Key Resistance- Euro Heavy Despite USD LossesAustralian_Dollar_Tests_Key_Resistance-_Euro_Heavy_Despite_USD_Losses_body_Picture_6.png, Australian Dollar Tests Key Resistance- Euro Heavy Despite USD Losses

The euro is the weakest performer an hour into North American trade with the EUR/USD off by 0.35% on the session. The single currency broke below channel support dating back to the January 16th before rebounding off the 38.2% Fibonacci extension taken from the January 13th and the overnight highs at 1.2885. Mild bearish RSI divergence suggests the euro may be putting in an intermittent top here with downside targets held at the 50% extension at 1.2855, the 61.8% extension at 1.2825 and 1.2780. A break back above the 23.6% extension at 1.2925 encounters topside resistance at former channel support backed by 1.2985 and 1.0320. Note that a break above the 1.2985 high negates this scalp setup, with such a scenario requiring us to reconfigure this particular Fibonacci extension. A key test of former channel support is likely before heading lower with only a break below the 1.28-figure flipping our short-term bias to bearish.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.3891

100-Day SMA

1.3420

50-Day SMA

1.3122

2011 EUR High

1.4939

---Written by Michael Boutros, Currency Strategist with DailyFX.com

To contact Michael email mboutros@dailyfx.comor follow him on Twitter @MBForex.

To be added to Michael’s email distribution list, send an email with subject line “Distribution List” to mboutros@dailyfx.com

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

DISCLOSURES