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
EUR/USD
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
Oil - US Crude
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
Wall Street
Mixed
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
Gold
Bearish
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
GBP/USD
Mixed
USD/JPY
Mixed
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
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 2.00% Gold: 0.48% Oil - US Crude: -1.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ICbXM6g3dk
  • Heads Up:🇺🇸 Michigan Inflation Expectations Final due at 14:00 GMT (15min) Previous: 2.1% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇺🇸 Michigan 5 Year Inflation Expectations Final due at 14:00 GMT (15min) Previous: 2.5% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇺🇸 Michigan Consumer Sentiment Final due at 14:00 GMT (15min) Expected: 74 Previous: 71.8 https://www.dailyfx.com/economic-calendar#2020-05-29
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -0.18% Wall Street: -0.45% France 40: -0.95% Germany 30: -1.19% FTSE 100: -1.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YWyi6VjNe4
  • Fed's Mester says yield curve control is not for this phase of action where Fed is supporting market functioning
  • Fed's Mester sees yield curve control as forward guidance support
  • GBP/USD: cluster of recent lows around the 1.2160 level and the Tuesday’s low print at 1.2190 may act as the first level of support for the pair. Get your $GBPUSD technical analysis from @nickcawley1 here:https://t.co/yvGzi5hoQw https://t.co/39532trXKn
  • RT @JeremyNaylor_IG: #RiskEventoftheWeek - 1 June @DailyFX discusses the #ECB meeting and the potential for indications of failure of final…
  • 🇺🇸 PCE Price Index MoM Actual: -0.5 Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-05-29
AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

2012-07-18 18:16:00
Michael Boutros, Strategist
Share:

Daily Winners and Losers

AUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_7.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD LossesAUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_6.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD LossesAUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_5.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

The Australian dollar is the top performer for a second consecutive day with an advance of 0.44% on the session at 1pm in New York. Equity markets are well supported on the back of Fed Chairman Ben Bernanke’s testimony before the Senate Banking Committee yesterday and the House Financial Services Committee today with market participants renewing expectations for further easing from the central bank. Despite broader market interpretations, we maintain our view that the Fed is unlikely to move on policy at the next meeting as the June employment report precedes the FOMC rate decision, with the central bank unlikely to implement further easing measures ahead of the critical NFP report. As such, we maintain our broader bias with the recent aussie advance likely to persist in the short-run.

The daily charts shows the AUDUSD breaking above the former July high at 1.0330 with the pair now trading within a newly identified ascending channel formation dating back to June 25th low. We noted this possibility in yesterday’s report with the move now invalidating our previous daily setup. Topside daily resistance is now seen at the confluence of the December highs and the 78.6% Fibonacci extension taken from the June 25th and July 12th lows at 1.0380 with subsequent ceilings seen at channel resistance (currently around 1.0420), the 100% extension at 1.0460 and the April highs at 1.0480. Interim daily support now rests with the 61.8% extension at 1.0325 backed by the 200-day moving average at 1.0280.

AUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_4.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

The scalp chart shows the AUDUSD holding within the confines of an ascending channel formation dating back to July 12th with the pair now testing interim resistance at 1.0360. A breach of this level eyes subsequent topside resistance targets at the 78.6% extension at 1.0380, 1.0425, and the 100% extension at 1.0460. A break below the 50% extension at 1.0280 (converges with 200-day moving average) alleviates some of the pressure on the greenback with such a scenario eyeing subsequent support targets at the 38.2% extension (1.0240), 1.0210, and the 23.6% extension at 1.0185.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.0282

100-Day SMA

1.0218

50-Day SMA

1.0020

2012 AUD High

1.0857

AUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_3.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD LossesAUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_2.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

The euro is the weakest performer against the dollar with the pair off by 0.20% late in the session. The losses as yields on periphery debt continued to climb with the euro struggling to find direction over the past few sessions. While the broader bias for the single currency remains weighted to the downside, the pair is likely to remain in consolidation in the near term as daily RSI continues to narrow into the apex of a wedge formation. Our initial objective remains the 61.8% Fibonacci extension taken form the May and June highs at 1.2130 backed by 1.0230 and the 78.6% extension at 1.1965. A breach above the weekly high at 1.2315 eyes daily resistance at the 38.2% extension at 1.2365 backed by soft resistance at 1.2435.

AUD_Cracks_Monthly_High-_10380_In_Focus_EUR_Heavy_Despite_USD_Losses_body_Picture_1.png, AUD Cracks Monthly High- 10380 In Focus, EUR Heavy Despite USD Losses

The scalp chart shows the EURUSD trading within the confines of a descending Andrew’s pitchfork formation with a short-term Fibonacci extension taken from the July 16th and 17th lows highlighting interim resistance at the 61.8% Fibonacci extension at 1.2272. Note that RSI continues to hold below trendline resistance with a topside break risking a breach above channel resistance, with such a scenario subsequent ceilings at 1.2295, the 100% extension at 1.2325 and 1.2350. Interim support rests with the 38.2% extension 1.2240 backed by 1.2220 and the weekly low at 1.2180.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.3074

100-Day SMA

1.2850

60-Day SMA

1.2628

2012 EUR LOW

1.2161

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

Review today’s Scalp Webinar for further insights and current trade setups

Join Michael on Thursday morning for a Live Scalping Webinar on DailyFX Plus (Exclusive for Live Clients Only) at 1400 GMT (10ET)

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

To be added to Michael’s distribution list, send an email with the subject line “Distribution List”

Introduction to Scalping Strategies Webinar

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

DISCLOSURES

News & Analysis at your fingertips.