The USD remained on the backfoot as continued concern over the Trump presidency flowed into the markets. The main headline over night was that Trump was pulling the US from the TPP and that a border tax was coming.
Fears of global protectionism sent USD/JPY lower and stocks slightly lower and allowed the EUR/USD and GBP/USD rallies to break to fresh recovery highs. The EUR/USD targets the 1.0830 100 DMA.
USD/JPY is looking to test Y112.50 lows with a break targeting the key 38% Fib retracement of the entire Trump election win rally. AUD/USD was a little more hesitant with some concerns about the impact on China/US trade relations overflowing into the Chinese proxy AUD.
We still managed fresh highs above 0.7600 however and we have to look further back in time now for resistance with the 2016 highs near 0.7850 now possible if the sea change view on USD continues.
| AUD/USD |
1/23/2017 11:57 PM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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AUD/USD Intraday: the bias remains bullish. |
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Pivot: 0.7570
Our preference: long positions above 0.7570 with targets at 0.7605 & 0.7625 in extension.
Alternative scenario: below 0.7570 look for further downside with 0.7550 & 0.7530 as targets.
Comment: technically the RSI is above its neutrality area at 50.
Supports and resistances:
0.7645 *
0.7625 *
0.7605 ***
0.7587 Last
0.7570 *
0.7550 **
0.7530 ** |
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