Trading long on the Nasdaq, trading short AUD/USD [Video]

Brad Alexander FX Large Limited

Welcome to this week’s Market Blast Technicals.

I’m Brad Alexander and on behalf of Valutrades, today we will look at AUDUSD, AUDCHF, AUDJPY, the Dow Jones Industrial Average (US30), and the NASDAQ (US100).

The NASDAQ has recovered from last week’s Omicron scare and has reached resistance just below 16000.

MACD is bullish on the 4-hour chart as the signal line has passed out of the histogram, but keep an eye on the Stochastic Oscillator which is overbought right now.

If the NASDAQ is to rise, we may get a temporary technical pullback.

Yesterday, we looked at the “Buy-the-Dip” strategy, off the lower trend line, on the Daily chart on the DJIA and levels are still rising, with the Stochastic Oscillator rising as well.

On the 4-hour chart, both MACD and the Stochastic Oscillator are bullish but be aware of resistance and this upper trend line.

Yesterday, we looked at strong vs weak currencies and we are returning to AUDUSD to look at the technical side.

Quite simply, we have seen the pair in a downtrend for over a month and price action is about to reach this upper trend line.

If we see a reversal off the trend line and the Stochastic Oscillator moving below 80, we may be looking at selling AUDUSD.

Keep an eye on AUDCHF and AUDJPY where we see similar situations.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.