|Day's Range||0.734 - 0.741|
|52 Week Range||0.7313 - 0.8136|
Investing.com - The broadly stronger dollar hit six month highs against the yen on Wednesday as optimistic comments from the head of the U.S. Federal Reserve reinforced expectations that the central bank is on track to keep gradually raising interest rates.
The market in the present scenario is going to be extremely noisy as the Brexit negotiations and strength in USD will keep the market under pressure. The market will remain under pressure as the Brexit negotiations gathered pace and fall in Tuesday’s session is likely due to an indication that the UK is going to leave EU customs union without a deal.
With the divergence in monetary policies between the Fed and the Australian and New Zealand central banks favoring the U.S. Dollar, traders are likely to continue to press the Aussie and Kiwi lower. Furthermore, any short-covering rallies are likely to be met by renewed selling pressure.
As we could have seen in the previous AUD/USD analysis, the price followed the bearish setup and at this point, it is making a breakout. The bearish triangle breakout zone is 0.7390-0.7405 and this is the POC for short trades. A 4h close below 0.7350 should initiate a continuation move towards 0.7524 and 0.7298. Selling on rallies is the valid option.
Investing.com – The dollar strengthened on Wednesday as Federal Reserve Chairman Jerome Powell presented a positive assessment of the U.S. economy during his semi-annual congressional testimony on Tuesday.
Based on Tuesday’s close at .7388, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the intermediate 50% level at .7397. The divergence between the monetary policies of the hawkish Federal Reserve and the dovish Reserve Bank of Australia continues to control the price action. Bearish traders are using this information to sell just about every rally.
The Australian dollar fell rather hard during the day on Tuesday, crashing into the vital 0.74 level, an area that has been supportive a couple of times now. I think at this point, it looks like we are probably going to be more range bound than anything else.
Investing.com - The dollar slid lower against a currency basket on Tuesday ahead of congressional testimony by Federal Reserve Chairman Jerome Powell, which markets will be watching closely for any indications on the path of interest rate hikes.
Investing.com – The dollar was little changed on Tuesday as investors awaited further clues on monetary policy when Federal Reserve Chairman Jerome Powell testify on the economy and monetary policy later in the day.
The market started the week with a bullish note, as the pair broke above the 1.17 level, reaching towards 1.1725 level. The British Pound shot higher during the Monday’s session reaching towards the 1.33 level but got enough resistance to fell slightly lower. The market rallied a bit during the Friday’s session reaching towards the 0.7450 level, as it found enough buyers to take the market forward.
The Australian dollar rose slightly during the trading session on Monday, reaching towards the 0.7450 level. The market continues to be noisy overall, which of course makes sense as we have so many different headlines moving the markets right now.
Based on the early trade, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the short-term 50% level at .7422. The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the secondary higher bottom on July 12. The main trend will change to up on a trade through .7484. A trade through .7360 will signal a resumption of the downtrend.
The market continued to move lower during the Wednesday’s session reaching down towards the 1.16 level but managed to bounce a little as it witnessed some buying interest around the area. If the market further breaks from here, the next major support will be at 1.15 level. There are a lot of political developments coming out of Europe and also the trade wars are building pressure on the market and hammering the Euro. A break above 1.17 level could bring some amount of stability to the market. …Read MoreGBP/USD
Softer economic growth in China weighed on risk appetite early in the day, with the U.S – Russia Summit, trade tariff chatter and U.S retail sales figures in focus through the day.
Look for the return of volatility at 0200 GMT when China releases its economic reports. GDP is expected to come in at 6.7%, down slightly from 6.8%. Fixed Asset Investment is expected to come in at 6.0%, down slightly from 6.1%. Industrial Production is estimated to have risen 6.5%, down from 6.8%. Retail Sales are expected to come in at 8.8%, up from 8.5%. Last month’s Unemployment Rate was 4.8%.
Based on last week’s price action and the close at .7425, the direction of the AUD/USD this week is likely to be determined by trader reaction to a downtrending Gann angle at .7437. Keep in mind that we are looking a weekly, short-term, counter-trend moves here. The longer-term trend is down and likely remain down due to the divergence in monetary policy between the Fed and the RBA. If you don’t want to play a counter-trend rally then use the upside targets to initiate new short positions if tested.
This week’s price action is likely to be tied to risk appetite, trade tensions, domestic data and Fed Chairman Powell’s testimony before Congress.
There were no other major releases last week so the price action in the Australian Dollar, New Zealand Dollar and Japanese Yen was primarily influenced by the U.S. producer and consumer inflation data as well as the consumer confidence report. Traders reacted to these reports because they could help influence the Fed’s interest rate decisions later this year.
The Australian dollar has fallen during the week, reaching towards the 0.7350 level underneath, an area that continues to see a lot of demand. I believe that the demand goes down to the 0.73 level after that, so those who are more apt to look for value propositions, this could be your opportunity.
The Australian dollar has fallen rather hard during the opening hours of the Friday session, but I also have seen a lot of support near the 0.7350 region. This is an area that has seen a lot of demand as of late, so it will be interesting to see whether we can break down below it.
With the 0.7425 horizontal-line restricting the AUDUSD’s recent pullback, the pair is expected to re-test the 0.7360 support; though, break of 0.7360 can make the quote vulnerable enough to visit the 0.7330 and the 0.7310 rest-points. In case the pair continue declining after 0.7310, also breaks the 0.7300 round-figure, chances of its drop to 61.8% FE level of 0.7255 can’t be denied. Meanwhile, the 0.7400 may offer immediate resistance to the pair before highlighting the 0.7420 for one more time. Should buyers refrain to respect the 0.7420 barrier, then the 0.7450 and the 0. ...
The market further dipped lower during the Thursday’s session testing the 1.1650 level, an area which has been a support more than once. The reaction in the market is due to the details in the ECB meeting minutes. Going ahead, the market is likely to hold this level and will also attract buyers interest. If the market further breaks from here, then it will rapidly unwind towards the 1.16 level. …Read MoreGBP/USD
Investing.com – Dollar rose on Friday, trading near a 10-day peak after U.S. consumer prices data on Thursday showed a build-up of inflation pressure that would allow the Fed to raise rates as many as four times this year.
While risk appetite returns to the markets, the Dollar looks to have found its some upside in the early part of the day, though it could all change should sentiment towards trade tariffs take another turn.