Aussie Dollar – AUD/USD fell lower its 0.7263 support level after price rejected its 0.7334 resistance level as we expected in our 29th July 2015 Market Outlook. Traders who went short as we recommended should have took profit at the 0.7263 support level. Price bounce at the 0.7263 support level and we may see price rally into its 0.7334 resistance level in the near term before continue to move lower. However since we are still in a bearish trend, traders may consider shorting this market again if price pullback to the 0.7334 resistance level and rejects it to rejoin on the bearish trend.
Euro Aussie – On the other hand, EUR/AUD did not played out as we would like to and price fell through the 1.5060 support level. However the 1.5060 support level had now turned into resistance level which may offer traders potential shorting opportunities in this market. When price pullback into the 1.5060 resistance level (Previous support level), traders may then consider looking for shorting opportunities especially on the lower time frame to ride on the short term bearish momentum. Traders who intend to short this market need to be more cautious towards shorting this market as the overall trend is still very bullish and conservative traders are recommended to wait at the sidelines until there’s valid buying opportunities to ride on the bullish trend.
Japanese Yen – USD/JPY performed a false break at the 123.69 support level. We could see price fell through the 123.69 support level but couldn’t stay long below it. Coupled with the facts that we are in a bullish trend, traders may consider looking for buying opportunity in this market. However price rejected the 124.43 resistance level yesterday and we could potentially see price move lower into its 123.69 support level before rally higher. If price breaks the 124.43 resistance level, we will then see price continue to rally higher in the coming days and traders may either look for buying opportunities when price pullback to the 123.69 support level or when price breakout above the 124.43 resistance level to jump on the bullish trend.
Posted on 2015-07-31 06:30:58