The AUDUSD lurched to fresh monthly highs at 0.7460 during trading on Tuesday following the Retail Bank of Australia’s (RBA) decision to keeping key rates unchanged that elevated sentiment towards the Australian economy. This sharp up move was complimented with Dollar vulnerability which was attributed from the fading expectations over the Fed raising US rates in Q2. A catalytic combination of AUD strength and a weakening Dollar simply provided a foundation for the AUDUSD to break above the 0.7400 resistance consequently turning bullish on the daily timeframe. With prices trading above the daily 20 SMA and the MACD crossing to the upside, bullish investors have been provided a platform to install another heavy round of buying. Previous resistance at 0.7400 could transform into a dynamic support at may encourage a further incline towards 0.7500.
The NZDUSD fulfills the perquisites of a technical bullish trend on the daily timeframe as there have been consistently higher highs and higher lows while prices are trading above the daily 20 SMA. Although bulls are in control, the growing expectations that the Retail Bank of New Zealand may ease in its next policy review on June the 9th combined with the hopes of another US rate hike in 2016 could encourage bearish investors to pounce. The pair currently remains subdued below 0.700 with sellers watching the firm 0.6900 support. A breakdown back below 0.6900 could encourage the NZDUSD to sink towards 0.6800.
For an extended period, the AUDJPY has traded in a wide range with support at 78.20 while resistance can be found at 80.50. Although prices are trading above the daily 20 SMA, the MACD has crossed to the downside and such suggests a period of consolidation within this pair. Prices could be poised to decline lower is risk aversion empowers the Yen consequently offering an opportunity for bearish investors to install a heavy round of selling. On the other hand, if the AUD overpowers the Yen then a breakout above 80.50 should pave a path towards 82.00.
The USDCAD plummeted during trading this week as a painful combination of Dollar weakness and a resurgence in CAD strength encouraged bearish investors to send the pair towards 1.2700. With prices breaching through the tough 1.2950 support the pair has turned bearish on the daily timeframe and could be destined to trade lower is Dollar weakness persists. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has crossed to the downside. Previous support at 1.2800 could become a dynamic resistance that may open a path for prices to trade towards 1.2600.
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