AUDUSD: Intraday bulls may take advantage of the range trading

Early Asia saw continued strength from the USD as it gapped up against all majors. However the latter half was relatively quiet due to a lack of scheduled news and markets continue to absorb what was said over the weekend from Key figures at the Jackson Hole summit.

UP NEXT:

• UK: Bank Holiday - as the major hub of FX transactions we can expect lower liquidity during London open.

• US: With the Greenback still benefiting from Yellen's slightly more Hawkish stance then positive data should have even more of an impact to help support for USD. Check out today's video to see key levels for USD crosses but the pairs I suspect to provide the more clear trends are EURUSD, GBPUSD and USDJPY.

• NZD: Early Asia session we have Kiwi Trade Balance where only a particularly strong number should help support the flailing Kiwi. It is forecast to be the lowest since September 2013 and in deficit for the first time this year, so only a surprise result in surplus is likely to be of benefit for NZD.

TECHNICAL ANALYSIS:

AUDUSD: Intraday bulls may take advantage of the range trading

Whilst we remain below 0.937 my bias remains for a run down to 0.920. However I thought we would have tested the 92c level last week. Instead we saw aggressive buyer around 0.924 to show solid support around these levels and it does make me question the likelihood of 92c. Early Asia trading has seen the Australian Dollar remain resilient against the Greenback and form intraday support above 0.9280. If we see any weakness from data tonight for the US the 0.9343 is a likely target, with a break above here likely to be capped by the 0.937 resistance zone.

EURAUD: Looking to fade any rallies

Asia trading has seen 1.470 hold as support and with the weekend gap yet to be fully closed i suspect we may see a bullish run up to the support zone before the dominant bearish trend resumes.

That said we may not even see the gap close - in which case we can take a break below 1.417 as a bearish continuation and for price to target 1.41.

Due to the overwhelming bearish momentum I would prefer to not counter-trend trade, instead seeking opportunities to sell into any rallies.

EURGBP: Suspect weekly charts have returned to dominant bearish trend

I suspect EURGBP has returned to its longer-term downtrend. It is still widely assumed that BoE will be one of the first major banks to increase interest rates, despite a spate of poor fundamental data. Interestingly despite the poor data Large Traders remain Net Long (according to data from CFTC) which suggests the declines seen against the US may be nearing an end. When you compare this to the increasingly fragile looking Euro then it would make sense for EURGBP to continue its bearish trend. Technically we saw a Hanging Man Reversal Candle 2 weeks again which was followed by a small, bearish Inside week to then gap down during Asia trading on Monday. Combined this suggests we have seen a top at 0.8035 and for the bears to target 0.79 and 01.787 (2014 low). A break below here should then target 0.78 and 0.775 over the coming months.

EURUSD: Further downside still looms

Due to the bearish momentum and shallow pullbacks then short positions will continue to be favoured. We have already seen a high-test wick to suggests a reluctance to trade higher, however as we have European and US news out later we can also allow for further spikes higher before the bearish trend resumes.

Only a break above 1.33 warns of a much larger retracement. However if we break above 1.325 then EURUSD becomes a 'stand aside' candidate until further directional clues are provided. Until then the downside continues to loom.