The USD has generally been in positive mode in July, rallying against the Dollar bloc (Canadian, Australian and New Zealand Dollars), a corrective rebound versus the Great Britain Pound (GBPUSD lower), but still indecisive against the Euro and losing ground to the Japanese Yen (which has benefited from a safe haven bid).
This activity points to a mixed tone for the US currency into mid-July.
- A firm rally from June leaves bias higher into mid-July, through the 2015 peak at 1.2835.
- Above here sees risk to the psychological/ option target at 1.3000 and multi-year peak at 1.3064.
Monthly USDCAD Chart
- A modest since the FOMC and Australian Employment data on Wednesday/ Thursday.
- However, the break to a new 2015 low maintains a downside risk to the .7269 target for July.
- The overshoot threat is to .7091 and .7000 targets.
Daily AUDUSD Chart
- Still defined by a range theme between 1.1436 and 1.0819.
- Only a break of these parameters sets a more significant bullish or bearish threat, respectively.
- Below 1.0819 targets 1.0520 and the 2015 low at 1.0459.
- Above 1.1436 points to 1.1467, 1.1534 and 1.1660 levels.
Daily EURUSD Chart
- A more aggressive bearish correction lower,, through 121.53 and also to probe 120.64 support.
- This has negated the bullish breakout seen May-June and favours a more negative tone now into mid-July.
- We see bias lower fo 118.85 whilst capped below 123.72.
Daily USDJPY Chart