FX Analytics - EUR/GBP/AUD

The dynamics of the currency market has now proven to be continuing where we have actually left off from May of this year. with the EURUSD pair; from a registered high last May at 1.4940 was a first signal of a Price & Trend Reversal followed by a series of weekly volatility until a corrective move from the middle of July through the 3rd week of August, which showed a wide trading range from a low of 1.3836 to 1.4550.

This corresponded with the US dollar weakness only until the last week of August. The irony of the matter, was that the signal for a continuing bearish directional trend can only be identified on an overall monthly chart formation. However, the back and forth fundamentals between the US and Europe has made it difficult to find a perfectly good timing for traders meeting a wider trading range each day that almost averaged between 150-250 pips on both directions of the market. Where short term trades would easily be taken out.

EURUSD Weekly Chart

With that said, the EURUSD & GBPUSD has finally gave way to the downside with more velocity setting the pace for the US Dollar to really get a new lifeline for its recovery. The 72.90 basis point proved to be quite supportive in spite of the several attempts reaching the 73.40/50 levels before the much awaited recovery working at the 77.38 basis point as of this writing. Although, support prices for both pairs have come to a slight corrective mode where certain buyers have emerged from the past couple of weeks price drop. This correction would be short-lived while the fundamentals this week would dictate the immediate price direction. The GBP & EU zone core consumer price index for August followed by Jobless claims, and the US retail sales for the earlier part of the week may provide some hints before the US University of Michigan confidence report would be coming out.

 

Aussie Dollar Daily Chart

Meanwhile, the Aussie dollar has dropped to its lower levels currently at the 1.0280 and would be re-attempting to reach its previous low parity levels again within the next couple of weeks ahead or even earlier. The technical candlestick formation for the AUDUSD thus far shows its bearish signal as indicated on the left hand figure.

The probability to reach parity levels would be attempted in the next trading days ahead as it levels off while the US Dollar Index continues its rally.