Welcome to today’s Market Blast.
Today, we will take a look at Forex Trading on the AUS200, AUDNZD, AUDCHF, AUDCAD, EURUSD, USDCHF, USDCAD, and the USD Index.
USD is still getting stronger, with bond yields climbing and the concept that the Fed may be looking at raising interest rates later this year.
The USD Index has now climbed past 100, and other USD pairs are showing the same price action with no end in sight.
Price action is now at a level that we haven’t seen for over a year, with the next key level at 102.4.
We see a similar situation with USDCAD, but CAD is suffering right now with the falling price of crude oil.
We see USDCHF at a key level now at 0.81 francs, with the next key level at 0.84 and the extreme level of resistance at 0.92.
Note that all these levels are round numbers and worth your attention.
If you are waiting for a reversal, keep an eye on the stochastic oscillator as it is currently overbought on the weekly chart.
Same again on the daily chart.
EURUSD has broken a key level of support at $1.14, with the next level below at $1.12.
Again, these are all levels from over one year ago.
Brent Crude is falling based on the positive flow of crude through the Strait of Hormuz, and, all going well, prices will fall to pre-conflict levels at about $61.
The strong USD is seeing Gold falling still, below $4,000, with the next level of support at around $3,900.
Yesterday, we saw Australian CPI lower than expected, and AUD fell.
Today, we saw Australian employment change higher than expected, so we are waiting for some AUD strength.
For example, on AUDCAD, we see price action pulling back to this lower trend line, and the stochastic oscillator oversold but not yet ready to turn up.
On AUDCHF, we see a range trading opportunity that has run for almost 2 months with an incredibly clear level of support and various levels of resistance above.
We do not have technical confirmation, but I encourage you to check all AUD pairs like AUDNZD, where we have price action at the lower trend line.
While we are looking at Australia, check out this downtrend in the AUS200, the Australian stock index, that seems to be trending down for the last 2 weeks.
