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USDJPY is ready to refresh multi-year highUSDJPY sustains upside break of a weekly resistance line, now support around 134.85, as bulls brace for the fresh multi-year high, currently around 136.70. In doing so, the yen pair could aim for the 61.8% Fibonacci Expansion (FE) of May 24 to June 16 moves, near 137.20. However, a convergence of the 78.6% FE and the upper line of the monthly bullish channel, near 138.80 by the press time, appears a tough nut to crack for the buyers. In a case where the quote remains firmer past 138.80, the odds of witnessing the 140.00 threshold on the chart can’t be ruled out. Meanwhile, pullback moves may retest the resistance-turned-support near 134.90, a break of which could direct USDJPY prices towards the aforementioned channel’s lower line, close to 133.90. Should the pair drop below 133.90, the sellers could target the 133.00 round figure before challenging the broad support zone around 131.30-40 comprising 200-SMA and multiple levels marked since late April. It’s worth noting that the bear’s dominance past 131.30 won’t hesitate to conquer the 130.00 psychological magnet. Overall, USDJPY is likely to witness further upside and can renew the multi-year top marked during the last week. However, RSI conditions could join the 138.80 key hurdle to challenge the advances.
Long
by MTradingGlobal
EURUSD has more downside room amid pre-Fed USD strengthEURUSD dribbles around a monthly low after breaking the six-week-old horizontal support. That said, the downward sloping RSI (14) line, not oversold, joins bearish MACD signals to also hint at the major currency pair’s further downside. With this, the sellers brace for the yearly low surrounding 1.0350. However, the RSI line and nearness to the Fed may restrict the quote’s downside below the same, if not then the 61.8% Fibonacci Expansion (FE) of late March-May moves, around 1.0270, will gain the market’s attention. On the contrary, corrective pullback needs to sustain beyond the immediate support-turned-resistance, around 1.0460-70, to convince short-term EURUSD buyers. Following that, the 20-DMA level near 1.0650 will precede the monthly top of 1.0773 to challenge the pair’s further upside. It’s worth noting that May’s top near 1.0790 acts as a validation point for the quote’s run-up towards late April swing high near 1.0935. Overall, broad US dollar strength ahead of the Fed’s widely anticipated rate hike keeps EURUSD pressured towards refreshing the yearly low marked in May.
by MTradingGlobal
AUDUSD bulls running out of steam at five-month-old hurdleAUDUSD extends pullback from the 0.7430-40 horizontal area comprising multiple tops marked since October 2021. Given the recently steady RSI and the volatile MACD signals, not to forget Ukraine-led risk aversion and downbeat comments from RBA Governor Lowe, the upside momentum is likely to fade again. Even if the quote manages to cross the 0.7440 hurdle, the late October swing low surrounding 0.7455 will act as another hurdle to probe the buyers. It should be noted, however, that a successful rise past 0.7455 enables the quote to challenge the 2021 peak of 0.7554. Meanwhile, pullback moves may initially aim for the March 10 peak of 0.7366 before retesting the 61.8% Fibonacci retracement (Fibo.) of October 2021 to February 2022, close to 0.7325. Should the AUDUSD bears dominate past 0.7325, the 200-DMA surrounding the 0.7300 may challenge the further downside, a break of which will make the quote vulnerable to declines towards 0.7215-10 support confluence, including 100-DMA and ascending trend line from late January. To sum up, AUDUSD approaches a crucial hurdle to the north with fewer supportive catalysts.
Short
by MTradingGlobal
USDJPY renews five-year high, 118.70 challenges further upsideUSDJPY cheers the greenback’s robust strength ahead of the Fed’s widely anticipated rate-hike to refresh five-year high. In doing so, the yen pair defied an upward sloping trend channel from late November, backed by the bullish MACD signals. However, overbought RSI and double tops around 118.65 could challenge the quote’s further upside. In a case where the pair rallies past 118.70, the 120.00 psychological magnet will offer an intermediate halt on the way to the early January 2016 peak surrounding 121.70. Meanwhile, a pullback is more likely and could lure risk-taking sellers if the quote offers a daily closing below 117.70. Following that, the highs marked in January and February of 2022, near 116.35, will be on the bear’s radar. Though, the 100-DMA and an ascending trend line from late 2021, respectively around 114.60 and 114.35, will act as the last defenses for the pair buyers, a break of which will give controls to the sellers. Overall, USDJPY may witness a pullback but bulls can keep the reins until the quote drops below 114.35.
by MTradingGlobal
USDJPY eyes further losses but bulls keep reinsA clear downside break of 50-SMA, as well as November’s peak, near 115.50 challenges the USDJPY pair’s recent rebound. However, 100-SMA and an upward sloping support line from December 03, respectively around 114.80 and 114.40, will restrict the yen pair’s additional losses, backed by nearly oversold RSI conditions. Should bears conquer the stated trend line support, 61.8% and 78.6% Fibonacci retracement of December-January upside, around 114.00 and 113.35, will act as additional supports before directing sellers to December’s low of 112.52. On the contrary, a daily closing beyond 115.50 will push back the short-term bearish bias, a break of which will highlight the weekly resistance line around 115.90. In a case where USDJPY rises past 115.90, the run-up to the 116.00 threshold and January’s peak of 116.35 can’t be ruled out. In a case where buyers dominate past 116.35, the 117.00 round figure may act as an intermediate halt during the rally aiming December 2016 peak around 118.65-70. To sum up, USDJPY witnesses a pullback and the same is likely to last for now but a reversal of the bullish trend is off the table.
by MTradingGlobal
1
Gold eyes further downside below $1,800Although oversold RSI conditions placate gold bears around $1,790, a sustained trading below the $1,800 threshold joins expected further recovery in the US dollar to challenge the upside momentum. However, the quote’s further declines will have to break a descending trend line from mid-January, at $1,772 now, to revisit the November 2020 low near $1,765. On a fundamental side, anticipated recovery in the US Retail Sales during January and the FOMC minutes may also exert downside pressure on the bullion. Though, any disappointment will not be taken lightly ahead of the US covid relief stimulus and hence can recall the $1,800 round-figure to the chart. Following that, the $1,830 and the monthly resistance line, around $1,844, can entertain gold buyers before pushing them to the 200-bar SMA near $1,853. During the bullion’s sustained run-up beyond $1,853, the monthly horizontal resistance near $1,875 becomes the key hurdle to watch.
OANDA:XAUUSDShort
by MTradingGlobal