EUR/USD still in December’s trading range
December’s trading range between $1.08 and $1.10 remains in effect for EUR/USD, so we are still watching to see how this resolves itself. At present, it looks like the sellers have the upper hand, but caution is prudent until a clear close below $1.08 takes place.
This would open the way to the December pre-European Central Bank lows around $1.0590, with a further target around the March lows of $1.0470. A break higher runs into resistance around $1.10 and then at the 200-day simple moving average just above it at $1.1040.
AUD/USD firmly in the hands of the bears
Monday’s steep drop has been reversed, with the pair back above $.072, but with the gains of late December wiped out it appears that the sellers are pre-eminent.
With momentum indicators on the daily chart now firmly bearish, a move back towards $0.7230 would be a selling opportunity, with a target towards yesterday’s lows near $0.7160, with a break below here heading towards the mid-December low around $0.71.
Bulls may have run out of stream on USD/JPY
The pair continues to head towards the key level of 2015 around ¥118.30. Buying since midday yesterday reversed some of the steep losses of Monday, but since then the bulls have run out of steam.
Now we look to see whether a drop through Monday’s low around ¥118.70 will materialise. It certainly looks like ‘sell on rallies’ applies here.