AUD/USD: Strong resistance at 7555/65

Jason Sen DayTradeIdeas.co.uk

AUD/USD, NZD/USD, AUD/JPY

AUDUSD beat 7400/20 for a medium term buy signal targeting 7495/99 & 7530/35 then within just 9 pips of our profit-taking target of 7555/65. Then yesterday we collapsed from the resistance, leaving a bearish engulfing candle for a sell signal.

HOWEVER!! Longs at good support at 7475/55 worked perfectly with a low for the day here.

NZDUSD longs did very well as we hit my targets of 7015/20, 7075/80, 7135/40, the September high at 7165/70 & next target of 7210 (missed by just 2 pips). HOWEVER!! Yesterday we wrote: could well have seen a high for the very strong rally now.

What a call! Even though there was no sell signal the pair crashed, leaving a bearish engulfing candle for a sell signal. AND LONGS AT FIRST SUPPORT AT 7140/30 ARE WORKING!!

AUDJPY beat 8570/80 with shorts stopped above 8600. We wrote: However unfortunately it does look like we have seen a high for the rally at yesterday’s high of 8624…likely to see profit-taking now in severely overbought conditions.

Another perfect call!!! The pair headed significantly lower leaving a bearish engulfing candle for a sell signal.

Daily analysis

AUDUSD held a fraction below the 7555/65 target for profit taking on longs & triggered sell signal yesterday with the bearish engulfing candle. Longs at good support at 7475/55 targets 7490/7500. Gains are likely to be limited now. However a break above 7510 allows a recovery to 7530/35. Strong resistance at 7555/65 should be a big challenge. It is unlikely we will reach this far but if we do, try shorts with stops above 7580. A weekly close above here is a buy signal targeting very strong resistance at 7630/50.

Longs at 7475/55 are working. Stops below 7440. A break lower is a sell signal targeting 7410/7390, perhaps as far as 7360/50.

NZDUSD headed lower exactly as predicted to first support at 7140/30 & THIS WAS THE LOW FOR THE DAY!! Longs are working as we target 7180/90 for profit taking. Gains are likely to be limited now. If we retest 7200/7220, try shorts with stops above 7240. BUT be ready to sell again at very strong resistance at 7255/75. Stop above 7300.

Longs at first support at 7140/30 must stops below 7110. A break lower is a sell signal targeting 7090/80, perhaps as far as 7040/30.

AUDJPY hit profit taking exactly as predicted & IN FACT MADE A LOW FOR THE DAY EXACTLY AT SUPPORT AT 8510/8490. Longs need stops below 8475. A break lower is a sell signal targeting 8440/20. A break below 8410 is the next sell signal targeting 8370 & 8340.

Our longs at 8510/8490 target 8540/50. Gains are likely to be limited but we could reach as far as 8580 for profit taking. I would sell at 8620/40 with stops above 8670. A weekly close above here however is a buy signal for next week.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.