Buyers prevailed on AUD/USD yesterday. The rally on the Australian dollar continued today. I do not exclude a technical correction. Here are the key levels:
Support – 0.7650
Resistance – 0.7680.
The pair may grow if the price fixes above the 0.7680 local resistance. I’ll open long positions. The MACD histogram is in the positive zone and continues to rise. It is a signal for buying AUD/USD. Potential movement - to 0.7725-0.7750.
A short-term correction may develop if the price fixes below the 0.7650 mark. The goal for taking profit is 0.7610.
Aggressive sales have been observed on USD/CAD since the beginning of the current trading week. The drop in quotations has exceeded 250 points. I don’t exclude a corrective movement in future. The divergence of price and MACD histogram has formed on the chart. I’ll buy if the price fixes above the 1.3040 local resistance. Potential movement - to the 1.3100 round level. The risk on the transaction will be reduced, since this position may be countertrend.
There is an interesting technical pattern on NZD/USD. A rather strong resistance level (0.7330) has formed during this trading week. The price is testing this mark now. I don’t exclude the development of a downward trend. I’ll open positions from the key levels.
I’ll open longs if the price overcomes the 0.7330 resistance level. Potential movement - to 0.7375.
There may be a corrective movement if the price fixes below the 0.7300 round level. Target movement - to 0.7260.
The technical pattern on USD/CHF indicates the corrective movement development. The price has retained the 0.9550 key support. The MACD histogram has moved to the positive zone. I’ll buy the pair, if the price fixes above the 0.9590 local resistance. Potential movement - to 0.9625-0.9650.
A weak statistics on the index of business activity in the manufacturing sector of Great Britain was published today. The technical pattern indicates the correction development. Bearish Engulfing PA pattern has emerged on the chart. I’ll sell GBP/USD, if the price fixes below 1.2950. The goal for taking profit is 1.2900 round level
The USD/CAD currency pair has formed a rather strong reversal formation of technical analysis – the divergence of the price and the MACD histogram. The correction is expected in the nearest future. I’ll buy the pair, if the price fixes above the 1.3000 round level. Potential movement - to 1.3040-1.3060.
There is an interesting technical pattern on USD/JPY. A correction occurred during the Asian trading session. At the same time, the pair has fixed at the 112.80 mirror resistance level, it boosted its growth. I wait for the continuation of the current trend. I’ll buy, if the price fixes above 113.30. Potential movement – to 113.60 – 113.75.
RBA has retained the key interest rate at the previous level of 1.50% today. It caused a sharp drop of the Australian dollar. AUD/USD has updated its local extremes. It indicates a possible trend changing. I’ll sell the pair, if the price fixes below the 0.7600 round level. The goal for taking profit is 0.7570. I’ll use a trailing stop for this position. Potential entry points into the market may appear during several days.
The FOMC protocols are in the focus today. This report may indicate the possibility of raising the Fed key interest rate in the current year.
My fav PA pattern Bearish Engulfing was formed on NZD/USD near the 0.7290 resistance level. The current technical picture indicates the downward trend development. I plan to sell the pair, if the price fixes below the 0.7260 mark. Potential movement - to 0.7220.
The divergence continued on USD/CAD. It seems to me that there may be a corrective movement soon. I will buy the pair after the breakthrough and retest of the 1.2960 level. Confirmations and entry points to the market may be found on smaller timeframes. The goal for taking profit is 1.3000-1.3015.
The report on the US labor market is in the focus today. Most experts believe that the main indicators will improve. At the same time, yesterday's preliminary statistics from ADP turned out to be weak. Today, we expect high trading activity and volatility. So, I won’t trade, but will just watch the market. For myself, I identified the following key levels:
The publication of reports on inflation and retail sales in the United States is in the focus today. Experts expect the improvement of the main indicator. The technical picture on majors is ambiguous at the moment. I plan to wait for the statistics publication. Transactions will be opened from the key levels
Weak economic reports on the inflation and retail sales continue to pressure the US currency.
There were aggressive sales of USD/JPY on Friday. I plan to open deals in the current trend direction. The currency is in the process of consolidation now. I’ll look for entry points into short positions, if the price fixes below the 112.50 local support. Potential movement - to 112.25-112.00. This transaction can last for several days.
The Canadian dollar continued to strengthen against the US dollar during the last week. I don’t exclude the possibility of a technical correction now. The USD / CAD currency pair has formed a very strong reversal formation – the divergence of price and MACD histogram. I’ll buy USD/CAD, if the price fixes above the 1.2680 local resistance. Target movement - to 1.2740.
There are aggressive sales on GBP/USD. GB published a weak report on the inflation. I’ll open deals in the current trend direction. I plan to wait for the retest of the "mirror" resistance. The goal for fixing profits is the 1.3000 round level. This transaction can last for several days.
Bullish sentiment continues dominating on EUR/USD. I plan to buy the pair, if the price fixes above the 1.1535 local resistance level. Potential movement - to 1.1575. I don’t exclude that EUR/USD may consolidate before the ECB meeting will be held this Thursday, July 20.
A weak report of the GB inflation caused a sharp fall of GBP/USD. The currency is consolidating at the moment. I think that there may be a downward trend continuation. I’ll sell the pair after the price fixes below the 1.3010 local support. Potential movement – to 1.2965.
The bullish sentiment is prevailing on NZD/USD now. However, I don’t exclude a technical correction in the near future. The divergence of price and MACD – a fairly strong reversal formation – was formed. I’ll sell the pair, if its price fixed near the 0.7355 local support. The goal for taking profit is 0.7330. The deal will be countertrend. My risk will be lower at the deal opening.
