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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
