AUDUSD: Sell @ 0.7735

Jim Langlands FX Charts

The Aud again fell sharply in EU/US trade on Friday, reaching 0.7710 and closing on its lows. A stronger US$ and firm yields, buoyed on the better than expected Industrial Production and Michigan Consumer Sentiment, dragged the Aud lower and it is looking very heavy at the start of the week. Thursday’s Unemployment will be the major local focus this week.

1 hour/4 hour indicators: Turning lower.

Daily Indicators: Turning Neutral

Weekly Indicators: Turning lower?

Preferred Strategy: Although the hourlies are oversold, the 4 hour momentum indicators look increasingly heavy, while the dailies are now tilting lower too. I prefer the downside still, and if correct, below 0.7700/10 would allow a move towards 0.7645, with only minor support at 0.7690 and 0.7670 lying ahead of that. Under there would allow a move to the 100 DMA (0.7615) and to major rising trend support 0.7570, although that may take a while.

On the topside, resistance will be seen at 0.7725/30 and then at 0.7750/55 and 0.7770.

Prefer to sell rallies

Sell AudUsd @ 0.7735. SL @ 0.7775, TP @ 0.7650

Economic data highlights will include:

M: China House Price Index – Feb

T: Australian House Price Index -Q4, RBA Minutes

T: Unemployment – Feb

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.