Technical Outlook 6-21

The sustainability of the forex majors such as the EURUSD and the GBPUSD to move forward higher has been at a slower pace since the volumes and volatility index have been diminishing to its low levels. The FOMC meeting may be the only meaningful indicator for volumes to increase and while most investors/ traders wait; the vulnerability of the market place is simply to move on a technically motivated market.

This has been true to the fact that the USDX has so far followed to the letter our market out specially after the index touched its initial objective on the 88.78 / 80 basis points which we have been constantly writing about. Now that the corrective mode for the USDX still continues to sustain since Gold has indicated its reinforced trend making new highs from last weeks movements has made money flow shift to the precious metals again. This has set the pace for the USDX to move lower in line with the corrective and pivotal price reversal for the majors like the Pound and the Euro.

Meanwhile, the USDJPY has shown its sensitivity of moving higher and currently working at the 91.25 from a technical double bottom price alignment at the 90.30 which happens to be a higher bottom price and making the symmetrical triangle of the weekly USDJPY chart more visible. This formation has been in the making since the candlestick configuration was setting in place. Contrary to the weekly chart formation of the USDCHF which has already reaffirmed its downward direction. Where currently working at the 1.1075-80 levels, there would only be a temporary correction on the prices but the continuation to move lower would continue after such correction is done.

Favorably, both the AUDUSD and the NZDUSD has been the ideal pairs as the established lows as held relatively at the 0.8150 levels and has now been at the 0.8815-20 maintaining its strength and the Kiwi at the 0.7125 from the 0.6677 key support prices. The psychological key prices on the low moving average of 0.8100 and 0.6600 respectively is now considered to be the base reference to consider for quite sometime.

Best to your Trades and Good Luck!