USD/JPY: Retracement developing before uptrend resumes - Westpac

Eren Sengezer FXStreet

Tim Riddell, Resarch Analyst at Westpac, is assessing the price structures in the AUD/USD for 1Q 2017.

DAILY
- After failing at the 115.50-80 resistance area, the sharp slide through previous 111.50-75 support has triggered deep pullbacks towards 108.75-109.40 area
- However, such moves are still consistent with corrections off Dec’s 118.65 high. Daily momentum is low. A turn/divergence is needed to confirm a near term base
WEEKLY
- Weekly momentum has slipped through neutral levels and remains negative. USD pullbacks could therefore continue, but are again considered to be corrective
- The 108.75-109.40 area should provide a solid base for another strong uptrend through 118. A close above 112.50 could trigger a turn in momentum.
MONTHLY
- After current corrections, the uptrend from 2016’s lows could see a full retest of the 125-126 highs (and could even extend towards 135-140 area)
- Monthly momentum remains positive. Although momentum across time frames is not aligned, a strong uptrend is expected to resume

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

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.