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Daily Insight: Cable At 2-Year High, Dollar Increasingly Fragile

ByMatt Simpson
Published 12/11/2013, 04:09 AM
Updated 08/22/2024, 06:01 PM
EUR/USD
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AUD/USD
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NZD/JPY
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Market Snapshot:
- Cable at 2-year high
- Metals continue to reject their lows
- USD increasingly fragile
- EUR/USD at 6-week high
- JPY Crosses retreat from their highs
- Swissy beneath October lows
FX v INDICES v COMMODITIES
AUD/USD: 0.9170 about to get retested?

Since the spike low on 6th December the Aussie Dollar has managed to claw back some of it's continued losses and take advantage of the weakening USD.

0.917 is an important level which is a pivotal S/R and has already been tested once this week. Although it is still too early to confirm if wee will break out of this level to the upside we are currently trading within a bullish channel and forming higher highs and lows.

At the time of writing we are resting on the daily pivot so my bias is for another attempt higher towards 0.917. Should we break above this there is resistance close by which may at the very least cause a reaction.

However above here opens up 0.92 and 0.923
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NZD/JPY: 0.9170 about to get retested?

Whilst Kiwi has had a strong week and JPY has been the weakest for a while now, JPY is seeing a reprieve from recent losses and the Yen crosses are cooling off as they retreat from their highs.

It is this last point that makes me favour a deeper retracement before a resumption of gains.

There is a good confluence of support around 85.50 but in the event we see a deeper retracement then 84.10 may prove to be stronger as we also have the lower ascending channel to help provide support.

​In the event 84.10 breaks (along with the lower channel) then this could provide a good shorting opportunity should we see a retest of the broken trendline.
<span class=NZD/JPY" border="0" height="553" width="699">


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