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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD slips, USD/JPY rises on appreciating US dollar but AUD/USD remains bid​​​

​​Outlook on EUR/USD, USD/JPY and AUD/USD as a new year begins.

USD Source: Bloomberg

​​​EUR/USD comes further off its five-month high

​ ​Last week EUR/USD managed to rise to $1.1139, close to its 27 July high at $1.1149, before correcting lower amid an appreciating US dollar for a third straight session.

​The fall through the accelerated December uptrend line at $1.1096 led to the $1.1017 to $1.1009 November peak and mid-December high being revisited on Tuesday morning. Were this support zone to give way, the 19 December high at $1.0988 could be revisited. Above Tuesday’s intraday high at $1.1050 sits Friday’s $1.1084 high.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​USD/JPY still hovers above five-month December low

USD/JPY is showing triple positive divergence on the daily Relative Strength Index (RSI) which accompanied last week’s low at ¥140.26 and points to a probable short-term bullish reversal in the currency pair.

​A rise above Friday’s ¥141.91 high would put the 200-day simple moving average (SMA) and the November-to-January downtrend line at ¥142.97 to ¥143.64 on the cards. Minor support below Tuesday’s ¥140.81 intraday low sits at the ¥140.26 December trough.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

​AUD/USD targets its five-month December high

​AUD/USD’s minor correction from last week’s five-month December peak at $0.6871 to Friday’s $0.6782 low has been followed by an attempt to revisit last week’s peak. It remains in sight provided that Friday’s low at $0.6782 underpins with the June and July highs at $0.6894 to $0.6899 representing further possible upside targets.

​Below support at $0.6782, the 19 December high can be spotted at $0.6774 and much further down the $0.6688 early December peak.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

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