The USD begins the week on the back foot following Friday's reversals. So for today's overview we look at the daily charts for EUR/USD, USD/JPY and AUD/USD.
EUR/USD Daily
- Friday’s bullish engulfing candle shows a hesitancy to break lower.
- We need prices to consolidate below 1.1432 before considering a short trade.
- The bias is for a run to 1.13 whilst we trade beneath 1.1432, making it a pivotal level.
USD/JPY Daily
- Since breaking the March trendline, JPY has started to turn lower.
- 112.89 marks a likely swing high which warns of further downside.
- A break of Friday’s low (111.38) confirms the bearish move is ready to resume.
AUD/USD Daily
- An elongated bullish pinbar (which is also an outside day) warns of a bear-trap at the lows.
- Near-term risks are to the upside, although the longer-term trend remains bearish.
- The 0.7160 high and bearish channel are potential targets / areas of resistance for bullish setups.