AUD/USD, NZD/USD, AUD/JPY
AUDUSD held 6 pips above support at 7370/60 & continues higher in the bull trend with the US dollar weaker as predicted reaching our target of 7495/99.
NZDUSD longs have done very well as we hit my targets of 7015/20, 7075/80, 7135/40 & the September high at 7165/70.
AUDJPY pushed through strong resistance at 8355/75 for a buy signal targeting 8440/50 & 8495/8505, 8530 & the May high at 8570/80. This target hit as I write this morning for a huge profit on longs.
Daily analysis
AUDUSD beat 7400/20 with a weaker US dollar for a medium-term buy signal initially targeting 7450 & mowing 7495/99 (hit as I write this morning). Further gains are expected despite severely overbought conditions targeting 7530/35 & 7555/65 for profit taking on longs.
First support at 7440/30. Longs need stops below 7420.
NZDUSD higher to my targets as far as the September high at 7165/70. Obviously, the last time we hit this area the pair dropped significantly so this is key. Shorts are risky but if you try, stop above 7185, keeping risks low. A break higher is a buy signal targeting 7210 then very strong resistance at 7255/75.
Any shorts at 7165/70 target 7140/30 then 7100/7090.
AUDJPY longs on the break above 8355/75 make up to 200 pips as we hit the target of 8570/80. This is very important being high for 2021 reached in May. A similar situation for NZDUSD. Shorts need stops above 8600. A break above here is a buy signal initially targeting 8640/50.
If you decide to try shorts at 8570/80 look for 8540/35 then 8500/8490 for profit-taking.
Chart
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
AUD/USD holds hot Australian CPI-led gains above 0.6500
AUD/USD consolidates hot Australian CPI data-led strong gains above 0.6500 in early Europe on Wednesday. The Australian CPI rose 1% in QoQ in Q1 against the 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY sticks to 34-year high near 154.90 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price struggles to lure buyers amid positive risk tone, reduced Fed rate cut bets
Gold price lacks follow-through buying and is influenced by a combination of diverging forces. Easing geopolitical tensions continue to undermine demand for the safe-haven precious metal. Tuesday’s dismal US PMIs weigh on the USD and lend support ahead of the key US macro data.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.