Strong Support at 6800/80
AUDUSD has hit very strong support at 6800/80 this week, as anticipated. Yesterday, it reached a low for the day at this level. Longs need stops below 6760, and a break lower would be a sell signal, targeting 6725/20 today. Profit-taking for longs now targets first resistance at 6850/60. Shorts here need stops above 6880, with a target of 6800 for profit-taking.
New Long Positions at 134.10/133.90
Longs at buying opportunity at 134.10/133.90 have worked perfectly as the pair edges slowly in the right direction to reach 135.36. However, it is not yet enough to hit the target of 135.45/55. The pair has reversed to retest the buying opportunity at 134.10/133.90, with a low for the day exactly at this level. Longs need stops below 133.60, and there is much better support at 133.10/132.90. Longs need stops below 132.70. Our new long positions at 134.10/133.90 have already surged to 134.60. If the rate breaks above 134.80, we can expect a retest of 135.20/30. A move beyond 135.40 will target 135.80/90.
EURJPY Sell Signal
EURJPY experienced a sell signal as it broke below first support at 143.10/142.90. We bounced to 142.91 before hitting the downside target of 142.40, but not as far as 142.00/141.90 for profit taking on shorts. Currently, the rate sits 14 pips above this low.
EURUSD Sell Signal
EURUSD witnessed a sell signal as it broke support at 1.0690/70 as expected, targeting 1.0600. The rate reached a low of exactly 1.0590/1.0570, which is minor support. A break below 1.0560 will be the next sell signal targeting 1.0510/00. We may see a bounce from 1.0590/1.0570 to minor resistance at 1.0640/50. Shorts need stops above 1.0660. A break higher can target 1.0680/90 today.
USDCAD Resistance Test
USDCAD tested the 4-month trend line resistance at 1.3570/90, reaching a high for the day exactly here. Shorts need stops above 1.3610. A break higher will be a buy signal targeting 1.3700. Shorts at 4-month trend line resistance at 1.3570/90 can target 1.3535 (hit yesterday) & 1.3490/80 for profit taking.
The Dollar Index Breaks Above Bear Trend Line
Immediate Targets for the Dollar Index
The Dollar Index broke above a 3-month bear trend line with completion of a bull flag, which means we have another buy signal for the dollar as longs as we hold the trend lines at 103.60/40. The immediate targets for the Dollar Index are 105.15 & 105.80.
EURCAD – Waiting for a Head & Shoulders Formation
Break Below Support for Sell Signal
EURCAD – waiting to see if a head & shoulders forms. The rate made a high for the day exactly at the 50-day moving average at 1.4440/50, which helps this pattern to develop as stated yesterday. Therefore, so far this pattern is starting to play out. A break below support at 1.4230/20 will be the sell signal targeting 1.4150 & 1.3980.
CADJPY Forms Small Double Top
Targeting a Buying Opportunity
CADJPY now has a small double top as we trade sideways for a week. The rate made a low for the day exactly at support at 9830/20. The break below 9920 did not hold yesterday, but if we do make the break today, we can target a buying opportunity at 9840/20. Longs need stops below 9800.
GBPUSD Hits High for the Week
Shorts Work Perfectly
GBPUSD hit a high for the week at strong resistance at 1.2130/50. Our shorts here worked perfectly as we hit 1.2030/20 for profit taking. Strong support again at 1.1960/40.