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EURUSD dips below 1.09

Article by ForexTime

The Euro was under pressure during Wednesday’s trading session with prices eventually dipping below 1.0900 as of writing. Although bulls remain somewhat in control on the daily charts, there is still a potential risk of the EURUSD tumbling lower if uncertainty heightens ahead of the second round of the French presidential elections on 7 May. With the Macron-inspired rally displaying early signs of exhaustion, bears may be presented an opportunity to install fresh rounds of selling on the currency pair. From a technical standpoint, price stability above 1.0900 may open a path higher towards the next relevant level at 1.1000. In an alternative scenario, weakness below 1.0800 may trigger a decline towards 1.0750.

USDJPY challenges 111.60 

The renewed appetite for risk has punished safe-haven assets with the Japanese Yen on the back foot. Bulls have effectively exploited the risk-on mood to elevate the USDJPY back towards 111.60 which remains an important pivotal level. Although prices remain bearish on the daily charts as there have been consistently lower lows and lower highs, the bearish trend is at risk of coming to an end if the 111.60 resistance is conquered. From a technical standpoint, the MACD trades to the downside but the momentum is turning positive. If the 116.60 resistance defends, then the USDJPY may descend back towards 109.00. On the other hand, a decisive breakout and daily close above 111.60 could encourage bulls to send prices towards 113.50.

AUDUSD breaks below 0.7500 

Aussie bears may be back in town and the breakdown below 0.7500 could be the start of further downside in the short to medium term. From a technical standpoint, the AUDUSD is turning increasing bearish on the daily charts as there have been consistently lower lows and lower highs. Prices are trading below the daily 20 SMA while the MACD trades firmly to the downside. Previous support around 0.7500 could transform into a dynamic resistance that encourages a further decline lower 0.7350. In an alternative scenario, a daily close back above 0.7500 may create headwinds for this bearish daily setup.

Commodity spotlight – WTI Crude 

WTI Crude remains pressured by the oversupply woes with both the technicals and fundamentals pointing to further downside. The sharp depreciation on the daily charts has made the commodity bearish and bears may be eying $47.00. There have been consistently lower lows and lower highs while lagging indicators such as the MACD are in negative territories. The dynamic support at $50.00 could transform into a resistance that encourages a decline towards $48.00. Longer term bears may need to secure weekly close below $47.00 to open a path to $43.00.

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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