USD Rallied sharply as it finally pushed the USD through some strong EUR/USD support at 1.0700 and USD/JPY resistance Y114. Gold also continued to fall and stocks printed fresh highs.
Trump’s war of words with mexico escalated as the Mexican premium cancelled the plan meeting as Trump twittered again that Mexico will pay for the wall and talked about a 20% import tax.
The threat of Trade War is not currently priced into the market at these levels but sincerely is mostly talk it will likely take concrete action to spark selling as sentiment is so strong. UK’s PM May and Trump meet today to discuss a trade deal post Brexit and is a big test for Trump’s Anti Trade rhetoric.
AUD/USD is quiet still holding above .07500 but the downside risks are brewing and more USD strength could break the recent rally and push the pair back below 0.7500 and the 200DMA. Sharp selling will likely take the stock market to sell off.
| AUD/USD |
1/27/2017 2:38 AM |
|
|
Trend daily chart  (=) |
Trend weekly chart  (=) |
|
AUD/USD Intraday: key resistance at 0.7550. |
|
Pivot: 0.7550
Our preference: short positions below 0.7550 with targets at 0.7520 & 0.7505 in extension.
Alternative scenario: above 0.7550 look for further upside with 0.7565 & 0.7580 as targets.
Comment: the upward potential is likely to be limited by the resistance at 0.7550.
Supports and resistances:
0.7580 **
0.7565 ***
0.7550 ***
0.7537 Last
0.7520 ***
0.7505 ***
0.7490 *** |
|
|
