EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
AUD/USD is consolidating
Information is not investment advice
Last week AUD/USD managed to take off from the 0.6760 area. Then it consolidated between 0.6855 and 0.6810. On the downside, the 100- and 50-day MAs support the pair. These lines made a positive intersection. Daily oscillators are moving higher. This means that the Aussie has potential to test the long-term downtrend resistance line in the 0.6880 area.
On the H4, we can see that the consolidation is taking form of a symmetric triangle. A false break to the upside took place on Friday before the pair stabilized at the 200-period MA (0.6830). Beware the volatility related to the US-China trade war.
The trading strategy is either to look for buy patterns in the 0.6810/20 area or to sell on the break below 0.6810 targeting 0.6770. The advance to the 0.6880 area may be a reason to look for sell opportunities.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
The number of Americans applying for initial unemployment benefits came in at a larger-than-forecast 870,000 last week, signaling that the recovery in the labor market is losing momentum as the coronavirus pandemic lingers and layoffs continue apace.
The GBP is likely to move upward until it reaches the resistance of 1.2795.
The aussie is expected to plummet for the next six months. What is the reason?