What to Expect with the USD CABLE & AUD Crosses (Tier 3 Analysis)
The increase in market volatility would create a wider price range from where the prices are current at. The likes of the USD where a good price recovery from its corrective phase has covered a reasonable ground from where it started at the 99.55. While this price came trading from its high at 103.82 in Jan. 2017. |
AUDCNH CROSS |
The previous high at 103.55-103.82 now serves as a price resistance that may well place a selling pressure price point as the created divergence exist everytime it trades close to those levels. However, the technical price adjustment from its correction has been made, therefore the adjusted-risk of taking on the recovery for the USD is fairly acceptiable at these current levels.
With the backdrop of Janet Yellen upcoming statements, the dominating AUD Cross have shown some good market potentials across the Major CCY pairs related directly with the USD. As price action would be centered more on these crosses across the board.
ReplyDeleteTreasury Yields have pushed the USD lower which initially lifted CABLE and the EURO. Yet both CCY majors have lost steam as they drifted lower on the daily session. Uncertainty still prevails for the market contrary to the overall trend direction of a stronger equities market and USD strength. There will always be major corrective moves in any trend direction.
ReplyDeleteFor now, the continuing weakness of the USD on a daily basis would be respected. Our short-side DX Futures rolled over to the month is still in place until such time a serious recovery would take place.
BTW, Correlation on most AUD Crosses are effectively gaining across the board from the last our previous call
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