Thursday's Technical Analysis: AUD/USD, GBP/USD, EUR/JPY, USD/JPY
ThinkMarkets | Jul 27, 2017 09:34AM ET
AUD/USD – Bullish tone on the Aussie weakens resulting in a downturn from a 2-year high, now at the spot price of 0.8024.
Subdued dollar has pushed the Australian currency towards significant highs and if it keeps that way, the first resistance is to be breached at 0.8066 clearing the way through the 2nd one at 0.8089 towards the 3rd key resistance at 0.8164. If however, the price turns back to the recent week-long consolidation, the 1st support could be breached setting direction towards the 2nd and 3rd support levels right next to each other at 0.7875 and 0.7858 respectively.
GBP/USD – Wednesday's FOMC meeting has pushed the sterling strongly above the $1.31 level. The price now steady around $1.3127.
The 1st resistance in close proximity awaits at 1.3158-64 followed by the 2nd one slightly above at 1.3180 level. If the price comes so far, the 3rd 2016 September high resistance is set at 1.3248. Alternatively, the support levels are set back around $1.30 levels as the 1st one looms at 1.3084-82 followed by the 2nd and the 3rd ones systemically at 1.3060 and 1.3037.
*A few spinning tops were formed in the EUR/JPY, justifying near term uncertainty in the price direction
The EUR/JPY was trading close to the first resistance at 130.512 where the resistance level is on 130.67, the 200 week MA and the July 11 high. If the chart breaks through the initial resistance, it opens a window to test the second resistance, which is on 130.91, the February 8 2016 high and also the last resistance at 131.66, the Feb 4 2016 high. However, the first support level is on 129.94, the July 26 low and the second support is on 129.78, the July 24 high. The last line of defence is on 129.43, the 21 DMA and also at the confluence of the 50 and 100 day moving averages.
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*The USD/JPY needs more momentum to reclaim yesterday’s high
The downside move was defended by the first resistance at 110.74, the 233 DMA. The pair seems to regain some momentum to fight its way back to the yesterday’s high at 112.20, the July 26 high. Before that, two levels which are worth noticing are the first resistance at 111.53, the July 26 mid-price and the 100 DMA, also the second level at 111.72, the 55 DMA and the Ichimoku conversion. The downside cushion of the price will be at 110.62, the 24 low and also the 110.34, the June 14 high.
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