USD/JPY and USD/CAD higher, but AUD/USD goes into reverse
Dollar strength has resulted in upside for the greenback against the yen and the Canadian dollar, while seeing AUD/USD turn sharply lower.
USD/JPY edges higher
Further gains on Tuesday point towards another push towards the 200-day simple moving average (SMA) for USD/JPY.
A longer-term positive view still requires a move above ¥138.00, which might then see the price move on to the ¥140.00 and ¥142.20 levels. Trendline support from the January lows continues to underpin the move higher, with no sign yet of a turn lower.
A pullback below ¥134.00 might signal that a test of trendline support is in the offing, and a move below ¥133.00 could signal that a fresh move lower is underway.
AUD/USD reversal is reversed
Monday’s positive outlook was wiped out by Tuesday’s decline in AUD/USD, putting the price back below the 50-day SMA.
This now takes the price on to the wide support zone around $0.66, which marked an area of buying since the beginning of March. The fresh decline below the 50-day SMA and existing price action below the 200-day SMA continues to amplify the bearish view.
A move back above $0.68 would be needed to put the buyers back in charge once more.
USD/CAD recovers above 200-day MA
Tuesday’s rebound in USD/CAD put the price back above the 200-day SMA, helping to avert a renewed bearish view for the time being.
Now the buyers need to provide additional momentum, and target the 50-day SMA, which held back gains last week. Above this the price would target the C$1.365 level, which marked the highs from late April and early May.
Sellers will want to see a drop back below C$1.34, in order to suggest that another test of C$1.33, the lows from April and May, might develop.
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