The AUDUSD has experienced an incredible depreciation in the month of January as ongoing China woes and Dollar appreciation reinforces the bearish sentiment towards the pair. Prices are technically bearish and the breakdown below the descending triangle on the 6th of January may have been the early signs for further declines to come. While the MACD still trades to the downside, the candlesticks are attempting to break above the 0.7050 resistance which is also coincidentally where the daily 20 SMA resides. A solid daily close back above 0.7050 may encourage a further appreciation towards 7100. On the other hand, if 0.7050 defends heavily and prices fail to close above, then this weakness may invite sellers to pull prices back towards the 0.6900 support.
Mario Draghi’s dovish rhetoric on the health of the Eurozone which boosted expectations around the possibility of the ECB unleashing further stimulus in March has punished the value of the Euro. Regardless of the short-term losses, this pair remains bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. This current bullish channel may provide a foundation for a further incline back up towards the 0.7750 high. A daily close back below 0.7450 however signals bullish weakness and invalidates this daily bullish outlook.
Despite the sharp losses the USDCAD has experienced, this pair still remains bullish on the daily timeframe as long as prices can keep above the 1.400 support. The continual decline in oil prices has punished the Canadian Dollar and this has consequently installed USDCAD bulls with momentum. From a technical standpoint, the MACD still trades to the upside but prices have crossed below the daily 20 SMA. This pair remains bullish on the daily timeframe as long as the 1.380 support is not breached.
WTI Oil is technically bearish on the daily timeframe as there have been consistently lower lows and lower highs. Prices are trading below the daily 20 SMA while the MACD has also crossed to the downside. A solid breakdown below the $30 support should encourage a further selloff towards the $28 support.
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