Is the AUD/USD upside correction over?

JFD Team JFD

AUD/USD traded lower today, after it tested once again the 0.6210 resistance level marked by Friday’s high. Overall, the pair has been in a recovery mode since March 19^th, but at the same time it has been forming a rising wedge formation. Now, the rate is testing the pattern’s lower bound and the 0.6115 zone. As long as the rate remains within the wedge, we would stay neutral. We prefer to wait for the exit before start examining the upcoming directional move.

In order to turn our eyes to the downside, we would like to see the rate breaking the lower end of the formation, and even better, the 0.6025 level, marked by Friday’s low. Such a move may wake up the bears, who could push the action towards the Thursday’s low, near 0.5865. If they don’t stop there either, another break lower may set the stage for the low of March 23^rd, at around 0.5700.

Our short-term oscillators suggest that the recent recovery may have run out of momentum, which supports the notion that the rate could exit the wedge to the downside at some point soon. The RSI, although above 50, has turned down and looks to be headed towards that equilibrium level, while the MACD, although positive, has crossed below its trigger line and points down as well.

What could turn the outlook back to bullish may be a strong recovery and a break above the 0.6300 zone. The rate would already be above the upper end of the wedge and also above the 200-EMA on the 4-hour chart. The bulls may then decide to climb towards the 0.6435 or 0.6460 levels, the break of which could allow extensions towards the 0.6680 area, slightly below the peak of March 9^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

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.