Talking Points:
– AUD/JPY, AUD/USD pivot at former support turned resistance.
– EUR-crosses seek stability; important few days for EUR/GBP.
– Follow trader sentiment in USD/CAD with live DailyFX SSI updates.
Risk appetite had been firm over the past few days, at least in part to the Bank of Japan’s unexpected actions on Friday. Yet risk markets are not out of the woods just yet, especially higher yielding currencies like the Australian and New Zealand Dollars. While NZD/USD is consolidating after a bear flag breakdown (and may prove to be one of the more volatile USD-pairs today with the Global Dairy Trade Auction results), the Aussie is showing signs of meaningful deterioration across a number of pairs.
Both AUD/JPY and AUD/USD have stalled into former support turned resistance areas and are threatening their uptrends from their January lows. AUD/CAD is garnering greater attention now that it appears to be on the verge of breaking both a longer-term multi-week uptrend as well as a more recent symmetrical triangle consolidation.
Read more: US Dollar Needs Strong Data to Take Advantage of Volatile Sentiment
We’re over one-third through the quarter – see how the DailyFX Research Q1’16 forecasts are holding up.
— Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
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Source: Daily fx
