Matt Simpson, CFTe, MSTA
CityIndex
I am more satisfied that we should begin to see an acceleration of losses and that 0.950 was in deed a market top.
Last week closed just above the 93c level after seeing in intraday low of 0.9275 last week. This was an important level for the bulls to defend as a weekly close below this level could have created a sell-signal within itself. The past 3 sessions have edged higher but lack any bullish momentum. When you consider that Friday's (3 candles ago) was during NFP then it should be noted that the Aussie failed to properly capitalise on the Greenback weakness.
As the A$ floats higher I suspect we will remain below the 0.935-37 zone as bearish swing traders seek to enter the market.
The previous post highlights the weekly charts and my call for a top at 0.95 and today's post highlight the 'a-b-c' move seen at the start of July on the Daily chart. The fact this is more than likely corrective (and we now trade beneath the lows of the a-b-c pattern) suggests we should be seeking a bearish continuation below 0.9275.
- Interim targets is now 0.920 below 0.937
- A break abvove 0.937 invalideas the near-term analysis
- A break below 0.920 confirms the bearish top on the weekly chart and for a resumption of the weekly bearish trend.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD holds positive ground above 1.0700, eyes on German CPI data
EUR/USD trades on a stronger note around 1.0710 during the early Asian trading hours on Monday. The weaker US Dollar below the 106.00 mark provides some support to the major pair.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.