A better recovery effort for the Australian Dollar against the US Dollar since the Reserve Bank of Australia Statement on Tuesday 4th August this week. However, generally, the US currency remains positive and here we highlight gains against the Euro and Japanese Yen.
- A minor setback Wednesday, but a high level consolidation of the Tuesday post-RBA surge higher, to prod at the down trend lines from June and May.
- This has further eased bear extension pressures and see risk of a base and neutral shift into early August
- Whilst below .7499 we see a still bear theme for August, but growing risk is for a push through here and a switch to a broader range theme.
Daily AUDUSD Chart
- After two inside patterns, a break higher through midweek as we had been expecting, having stated “we see an upside bias for 124.38 and 124.58/62 a; break here aims for 125.00 and 125.38”.
- The probe above 125.00 leaves the bias back higher for Thursday and reinforces the previous push above 124.48.
- Furthermore, the late July rally from our support area at 122.90/85, through 124.48 has set a bullish outlook for August..
4 Hour USDJPY Chart
- A bear bias this week, back from 1.0990/99 resistance to probe below 1.0868 support and leave bigger picture bearish pressures intact from the July push below 1.0819 and more recent stall back from ahead of 1.1216.
- This leaves risk lower this week and for early August.
- Whilst below 1.1216 we see a negative tone with bearish bias back to 1.0807.
- A break through here targets 1.0658, 1.0520 and 1.0459.
2 Hour EURUSD Chart