Article by ForexTime
There has been some big news in the late evening trading session as it appears that Muller has subpoenaed documents from the Trump organisation relating to Russia, which has spooked equity markets as a result. However, the big story of the day has been the strength of the USD. It would seem today has certainly been a wakeup call for the USD bulls, and they’ve piled on the pressure, primarily on commodity currencies. As the NZD, AUD and CAD have all been hit hard by sellers and USD bulls.
The big story today has technically been the USDCAD which finally saw a strong breakout of the heavy resistance levels that had been blocking further movement in recent times. With oil markets remaining fairly flat and the Canadian economy looking a little bit down after the recent trade dramas with the US and NAFTA, it would seem that the USD bulls are taking their chances while they can now. The surge on the chart has pushed through the key 1.30 level, and is now looking like it could extend higher to the next level of major resistance at 1.3100. Beyond this traders will likely look to focus on 1.3198, but we could see some pullbacks and I would treat previous resistance levels as support in this instance. If we did swing lower then support at 1.2921 would be the likely target, with 1.2800 the long term goal for bearish traders.
Across the pacific and the Australian dollar was hammered on the charts, as the USD bulls took a big bite out of it. This week has been an okay week for the Australian dollar, but clearly the markets were not keen on risk appetite and have responded accordingly pushing the AUDUSD lower. So far the 200 day moving average has managed to slow the bearish movements for the AUDUSD, but this looks more like a temporary measure given the volatility at play for the AUDUSD. If the trend does continue lower then I would expect to see support at 0.7780 and 0.7719 as likely candidates for pressure. If the AUDUSD bulls can return and it swings back up then resistance levels can be found at 0.7864 and 0.7946, but I would need to see a strong engulfing candle tomorrow to signal anything bullish come back into the market for the AUDUSD.
Lastly the NZDUSD has swung lower, but probably not as bad as the rest today. Figures out yesterday were quite disappointing and the market has looked to take a swipe and it looks like the bearish trend could continue. So far support at 0.7255 is likely to pause any movements, unless we see a large swing. The real target for traders here though will be of course the 200 day moving average which is always something that traders like to pay attention to in these markets. Resistance levels can be found at 0.7324 and 0.7431 with them being long term trades on a bullish swing in the market.
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Article by ForexTime
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