Aussie Dollar – AUD/USD fell significantly lower in the past few weeks after price rejected and performed a false break at the 0.7789 resistance level as we expected in our 23rd June 2015 Market Outlook. Traders who went short at the 0.7789 resistance level as we recommended may consider continue holding onto the short position while trailing the stop as the overall trend is still bearish at the moment. Traders who missed the shorting opportunity may consider selling short this market when price pullback to its 0.7583–0.7533 resistance area. Traders who went short earlier at the 0.7789 resistance level may also consider scaling into the position when price pullback to the 0.7583–0.7533 resistance area to maximize the potential gains in this bearish trend.
Japanese Yen – Yesterday USD/JPY broke its 122.01–121.79 key support area which opens the door for potential further decline in this market. The long term trend is still bullish but the short term trend had turned bearish after price broke its 122.01–121.79 key support area. Price is now making its way back to the 122.01–121.79 key resistance area (Previous key support area) and if price rejects this 122.01–121.79 key resistance level, traders may then consider shorting this market to ride on the bearish trend.
Loonie Dollar – USD/CAD rally into its 1.2830–1.2780 key resistance area after price breakout above the 1.2560 resistance level as we expected in our 7th July 2015 Market Outlook. Traders who went long as we recommended may consider taking profits or at least scale out the position at the 1.2830–1.2780 key resistance area as it’s the major roadblock for price to rally higher. We may see price fell lower from here to its 1.2560 support level in the near term thus aggressive traders may consider taking a short term counter trend trade at this very key resistance area while conservative traders are recommended to stay at the sideline until price pullback to the 1.2560 support level or wait for price to breakout above the 1.2830–1.2780 key resistance area and trade in line with the overall bullish trend.
Posted on 2015-07-09 06:30:08