EUR/USD: Dip buyers still making solid profits

EUR/USD Current price: 1.3650

View Live Chart for the EUR/USD

Underlying uptrend continues remarkably steady, with buying interest firm on every dip. Worth noting is that since the technical breakout out of its daily 1.3260-1.34 range, the rally has evolved from non-volatile to increasingly show more volatile action - courtesy of Friday's NFP -, which gives us early indication of more sellers showing up to challenge further highs before a meaningful correction takes place. From a short term view, last Friday's 6 hours correction before NY close is now anchored by ascending 20-H1 EMA +50 - 61.8% fib retrac. from NFP rally. In order for bears to s/t take control, 1.3630 should be taken out, potentially leading to 1.3585, where plenty of buyers were parked after the initial USD spike post NFP. A break into new highs, on the contrary, implies further upside resolution to 1.38 next goal for buyers.

EUR/JPY Current price: 126.50

View Live Chart for the EUR/JPY (select the currency)
Last week, we discussed that early evidence of parabolic moves in EUR/JPY were starting to emerge, a dangerous sign if one is to reinstate longs blindly, just purely based on the strong upward momentum. On the upside, a break above 127.00 implies a next logical target of 128.00 - March 2010 high - while on the downside, breaking through ascending 20-h1 EMA at round 126.00 is pre-requisite to accelerate possible corrective slide to 125.00.

USD/JPY Current price: 92.80

View Live Chart for the USD/JPY (select the currency)

The powerful bullish bias remains intact, with price showing no clues of any potential retracement as 93.00 looms. A break higher exposes next technical resistance at 93.70 - Jan 2010 high - while a correction should encounter dip buyers around contention area 92.20-40, confluence between last swing high and a 45º 20-h1 EMA.

AUD/USD: Current price: 1.0418

View Live Chart for the AUD/USD (select the currency)
The AUD/USD is trapped in a 100 pips intraday range between 1.0380 and 1.0480. Price remains heavy with the sellers holding the upper hand as a pre-breakout scenario to the downside is on the making. From an hourly chart, lower lows and lower highs are printed, suggesting squeeze of longs remains in place despite Friday's false break down. Potential target for bears is 1.0350, while only a penetration of 1.0450 may ease buyers pressure, which would be further confirmed if 1.0480-1.05 contention area is regained. 

  New to Forex? Visit our  Glossary!

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.