Welcome to this week’s Market Blast Technicals where we will look at the Hang Seng (HK50), the NASDAQ (US100), EURUSD, USDCAD, USDJPY, and AUDUSD.
The USD continues to fall and here we are using the 100 period EMA on the 4-hour charts to gauge its status.
We can see that on some pairs, like USDJPY and AUDUSD, that it is acting as a dynamic line of support and resistance.
We see USD weakness as well in USDCAD with a slight boost to CAD as the price of WTI attempts to creep higher.
USDCAD had tried to break the current key level of support last week and at the beginning of June so watch for a break below where we will be in sight of more support.
We need to zoom out to the Weekly chart on EURUSD to see our current level from almost 2 years ago.
Using Fibonacci on this bear run from 6 years ago, we see price trying to break resistance at the 38.2% level.
More recently, if we use Fibonacci on the bear run from 2 years ago, we see price trying to break resistance at the 61.8% level.
The overall view of the indices shows strength in the US markets, especially the tech stocks on the NASDAQ, but we see other indices like the FTSE 100 and the AUS 200 still below the 200-day SMA.
The HK 50, however, is moving up today and has just bounced off the lower trend line.
We see the same bounce on AUDUSD and AUDJPY so we will look for further gains on AUD.
That’s all for now. Happy trading with Valutrades and we will see you next week.
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