AUD/USD longs at good support at 7475/55 worked perfectly with a low for the day here and a bounce to our target of 7490/7500. (A high for the day just 12 pips above). Thursday’s bearish engulfing candle remains a sell signal for this week.
NZD/USD topped out on Thursday as predicted leaving a bearish engulfing candle for a sell signal. However longs at 7140/30 worked on Friday hitting 7180/90 for profit taking. A high for the day here in fact.
AUD/JPY saw a high for the rally at Thursday’s high of 8624 as predicted leaving a bearish engulfing candle for a sell signal. Our longs at 8510/8490 worked perfectly hitting the 8540/50 target for profit taking and in fact this was the high for the day before prices sold off to 8460.
Today’s Analysis
AUD/USD held good support at 7475/55 and it could be worth trying small longs here again targeting 7490/7500 for profit taking. Gains are likely to be limited, but a break above 7515 allows a recovery to 7530/35. Strong resistance at 7555/65 should be a big challenge. It is unlikely we will reach this far but if we do, try shorts with stops above 7580. Longs at 7475/55 stop below 7445 (so the risk is very small). A break lower is a sell signal targeting 7410/7390, perhaps as far as 7360/50.
NZD/USD longs at first support at 7140/30 could work again targeting 7180/90 for profit taking. Gains are likely to be limited now. If we retest 7200/7220, try shorts with stops above 7240. BUT be ready to sell again at very strong resistance at 7255/75. Stop above 7300. Longs at first support at 7140/30 must stops below 7120, so the risk is very small. A break lower is a sell signal targeting 7090/80, probably as far as 7040/30.
AUD/JPY expected to test first support at 8460/40. This may hold on the first test only for a bounce to 8500 but gains are likely to be limited after the sell signal. Unlikely, but further gains meet a selling opportunity at 8540/50. Stop above 8570. I would sell again at 8620/40 with stops above 8660. A break below 8420 is the next sell signal targeting 8370 and 8345/35.
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