Technical Overview of USD/JPY, EUR/USD and AUD/USD Currency Pair

USD JPY

 

USD traded lower against JPY and closed at 107.29.

The Citigroup analysts make a case for buying the dips in the USD/JPY pair below 107.50
 support area, as they believe the downside doesn’t look more compelling.

USD: Weakness Likely To Extend As Key Technical Support Levels Are Broken.

The dollar index finally broke below its 200-day moving average on Friday at 96.600 which opens the door to further weakness in the near-term.

Flags a scope for further weakness in the future.

 

According to the Analysis, pair is expected to find support at 107.179 and a fall through could take it to the next support level of 107.068. The pair is expected to find its first resistance at 107.468, and a rise through could take it to the next resistance level of 107.646.

 

EUR USD

 

EUR traded higher against USD and closed at 1.1397.

Longs Super-Trade In The Month Heading To Fed's Cut.

EUR/USD position as the second-best G-10 FX trade in months leading up to the first Fed cut, only outpaced by a long EUR/NZD position.

ECB easing is also a done deal now, as Draghi hinted of easing unless the outlook improves (more QE and a rate cut).

The outlook will not improve (before 2020), but the ECB usually delivers when projections are updated – i.e. in September (they will ease with a time-lag after the Fed.

 

According to the Analysis, pair is expected to find support at 1.13742, and a fall through could take it to the next support level of 1.13511. The pair is expected to find its first resistance at 1.14120, and a rise through could take it to the next resistance level of 1.14267.

 

AUD USD

 

AUD traded lower against USD and closed at 0.6958.

RBA Maintains Call For Infrastructure Investment.

Rate cuts at low yield levels may not be enough to boost economy.

Quantitative Easing may be done.

 

According to the Analysis, pair is expected to find support at 0.69354, and a fall through could take it to the next support level of 0.69122. The pair is expected to find its first resistance at 0.69750, and a rise through could take it to the next resistance level of 0.69914.

 

Key Fundamentals of the Day

 

Gold- Fed is seen cutting rates by a 50bp in July

Analysts at Morgan Stanley raises their gold price forecast for the second half of this year and the year after, in the face of the dovish Fed rate expectations, broad dollar weakness, global economic slowdown and falling US rates.

Real yields close to zero would reduce demand for yielding USD assets, could increase the demand for gold.

The negative territory could generate considerable further upside for gold's price.

Gold price forecast to average USD 1,435 in H2 of this year and USD 1,338 in 2020.

 

For Detailed analysis visit XtreamForex YouTube Channel.

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