We continue lower to 9964 & outlook remains negative as we look for 9900/9890, perhaps as far as 9830/25.
AUDUSD longs on the break above 6720 & break above 6805 worked perfectly as we hit targets of 6830 & 6870.
On Friday I warned that we could reverse from the June high being severely overbought short term & the pair dropped over 60 pips. At this stage we remain in a 5 month sideways channel.
Best support at 6790/70. A low for the day exactly here yesterday. Longs need stops below 6760.
A break above 6910 could be a buy signal for today targeting 6960/65 & even 7000 is not out of the question.
NZDUSD support at 6320/10. A low for the day exactly here yesterday. Longs need stops below 6290.
CADJPY broke support at 106.00/105.80 so the break below 105.50 was a sell signal targeting 104.95/85 for profit taking on shorts. Target was hit.
We then had a high for the day exactly at resistance at 105.70/90 on Friday & again yesterday. Shorts on a retest this week need stops above 106.05.
A break below 104.65 this week is a sell signal targeting 104.40 & 103.80.
USDJPY - the bullish engulfing candle on Friday would usually signal a resumption of the longer term bull trend. However we meet strong resistance at 139.00/20. Unfortunately, yesterday we ran as far as 139.40 so my stop was too tight.
This is tricky but if we can hold above 139.30 I would take this as confirmation that we can trade higher (& I do think we will eventually although I cannot guess the timing) towards 140.20 & even 140.80. So if possible I would reverse in to a long at 139.20/00 with stop below 139.80.
A break below 138.40 however would kill my idea that we can trade higher.
