USD & AUD Close-Up

The USD weakened significantly in last week’s Forex trading. Will and can these USD pairs continue with the trend? Let us review the majors.

EURUSD

The Euro posted weekly bullish engulfing twins last week but at the same time the currency pair is approaching major resistance levels such as the trend line and the 1.40 psychological price level. Breaking such resistance will not come without a fight, but if it does then a break out scenario could occur up to the 78.6% Fibonacci retracement level. Decent space (green circles) seems to be present there. For the moment though dips this week could be potentially interesting buys as last week’s candle gets retraced.

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On the hourly chart price has respected the 23.6% and 38.2% Fibonacci retracement levels. The 38.2 could already be the bouncing spot this week for more upside but it’s too soon to tell during the first (Asian) session of this week’s trading. However, obviously if price does retrace back to the 50% or 61.8% levels, then these could be interesting bouncing spots and have plenty of swing trade opportunity with decent R:R value.

GBPUSD

The GBPUSD is simple: it’s all about the top. Will price break it or is destined to become a double top? Forex traders need to keep an eye on last week bullish candle (just like the EURUSD), the uptrend channel (blue), and the top (red).

1)      A break above the top could see the Cable accelerate up to the next resistance

2)      A break below the channel would confirm double top

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AUSSIE

The Aussie had some end of week volatility after a major run up throughout the week. The consolidation has turned into a contracting triangle. Considering the fact that price had upside momentum prior to the triangle, an upside break-out would meet the requirements of a with-the-trend break out.

[tweetable alt=””]This is one to keep an eye on: our DTT template has provided signals for longs[/tweetable] (see green candles in screenshot). The risk (automatic red line) has been reduced to below the triangle – just in case the triangle does not break bullishly. Those not in the trade as yet could either take the break or even wait for the pullback as Friday’s daily (orange) could cause an intra-day pullback and volatility.

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By the way, watch out for the AUD Monetary Policy Meeting Minutes on Tuesday April 15th.

AUDNZD

Last but not least let’s take a look at the AUDNZD development. The AUDNZD has approached major monthly support levels (green) and is seemingly bouncing from them.

Last week’s Doji candle does not encourage the continuation of the rebound but does not severely block the way up as the weekly candles still post higher highs and higher lows 4 weeks in a row.

The main question is whether the current setup will turn out to be:

1)      An impulsive rebound up

2)      A contracting triangle

Price respected the 88.6% Fib (purple) and now has stopped at the opposite 78.6% Fib (orange). Price will need to push through the Fibs and top for a break out scenario to the upside and break below the uptrend channel (magenta) for a break lower down to support.

What do YOU see on the AUDNZD?

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Before closing, check out these 2 articles on IRA:
1) Intro to IRA
2) Last minute deductions

Thanks for sharing this article! And many pips plus Happy Trading!

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