Daily Market Report – AUD/USD narrowing ahead Australian data July 26, 2017

AUD/USD accumulation or distribution?

Price moves in range on the short term and awaits for the Australian economic figures to bring some action. Technically, has shown some exhaustion signs, but is premature to say that we’ll have another leg lower in the upcoming period.

Is trading near the 0.7937 level, below the 0.7940 yesterday’s low, remains to see how will react after the Australian data will come out. A disappointment will send the rate tumbling on the short term, but we have to wait for a confirmation.

The Australian CPI could increase by 0.4% in Q2, less versus the 0.5% growth in the former reading period, while the Trimmed Mean CPI could increase by 0.5%.

AUD/USD moves sideways on the short term, but maintains a bullish perspective as long as is trading above the upper median line (uml) of the minor ascending pitchfork. Remains to see what will happen in the morning because the fundamental factors are expected to take the lead again and to drive the rate, remains to see the direction.

Is trapped between the 0.7989 and the 0.7874 levels, only a breakout from this range will bring a clear direction.

Looks a little exhausted after the failure to reach and retest the warning line (wl1) and the 0.7989 major static resistance, but a selling opportunity could occur only if we’ll have a valid breakdown below the median line (ml).

NZD/USD is the upside movement completed?

Price dropped significantly today and touched the 0.7400 psychological level, the retreat is natural after the impressive rally, could come down to test and retest a static support in the upcoming days.

Could approach and reach the 0.7375 static support (resistance turned into support) after the failure to reach the third warning line (wl3) and the WL3 of the former ascending pitchfork. We may have a buying opportunity if the rate will consolidate above the mentioned static obstacle, but only if will take out the wl3 resistance.

A breakdown below the 0.7375 level will confirm a drop towards the fourth warning line (WL4), which represents a critical support.

EUR/CHF another breakout attempt

Price rallied aggressively and erased the last day’s losses, looks motivated to take out some important resistance level, signaling that the rate will increase further in the upcoming period.

Is pressuring the median line (ml) of the minor ascending pitchfork after the impressive breakout above the upper median line (UML) of the major ascending pitchfork. Right now is trying to take out the 1.1087 resistance (previous high). Sould increase further if will stabilize above the UML, even if will stay below the median line (ml) of the minor ascending pitchfork, another drop will come only if will fail once again to stay above the UML.

By Olimpiu Tuns

Market Analyst

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