• Most JPY crosses found resistance today, with USDJPY doing so just above the highs since the end of January. Traders don’t want to take the pair higher until we see the other side of the US employment report on Friday, it would seem.
• EURUSD scratched out new one-week highs but this did not serve as a catalyst for further buying as we await tomorrow’s European Central Bank meeting.
• AUDNZD posted a key break-out on the day that looks technically compelling.
• Metals consolidated back a bit higher finally, after a very persistent sell-off of late.
Chart: AUDNZD
The most interesting chart today is the AUDNZD, which broke through a local head-and-shoulders formation and is where we may be seeing a go at the 1.0900+ area resistance now after the recent double bottom down below 1.0600.
Chart: NZDUSD
The weak kiwi was also in evidence versus the US dollar, and sufficiently so as to trigger a new short-term bearish trend. Although this comes atop a longer term bullish move, we can only talk of a softening up of the former bull market.
Chart: EURGBP
Another interesting chart is the EURGBP, which pushed back lower after two attempts over the past two days above 0.8300. Technically, it looks like the pair wants to return for a test of the sub-0.8200 support but let’s see what the ECB has to say tomorrow. Traders are likely to need to guess the right outcome beforehand to capture a significant portion of a move either way, as the pair will move quickly on tomorrow’s developments.
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