Jason Sen talks EUR/USD, Australian dollar against Japanese yen and AUD/USD - March 22nd
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AUDUSD shorts at 6700/20 DID work again, as the upside breakout fails, with a high for the day at 6726.
On the downside we can target 6670, (hit yesterday) perhaps as far as 6640/35 & 6620.
We can try shorts again at 6700/20 with stops above 6730. A break higher sees 6710/00 act as support to target very strong resistance at 6770/90. Shorts need stops above 6810.
AUD/JPY
AUDJPY longs at the 15 year trend line & 100 week plus 500 day moving average support at 8790/80 could start to work as we hold above the December low at 8700. A break below here is a sell signal.
Targets for longs are 8850 (a high for the day here again yesterday) & 8930 which were both hit on Friday. Further gains can target 8960/70.
Further gains this week can target 8960/90. A break higher is a buy signal targeting 9080 & resistance at 9130/40.
EUR/USD
EURUSD tests the upper range of the broadening megaphone pattern with resistance at 1.0780/1.0800 & a high for the day exactly here.
With ECB talking tough on inflation & the Fed expected to raise only 25 bps or even pause, plus market expectations for cuts as soon as June, you have to wonder if EURUSD will continue higher in to the end of the month.
So shorts need stops above 1.0815. A break higher is a buy signal targeting 1.0870/80.
Shorts at 1.0780/1.0800 are working so far & can target first support at 1.0730/20. Obviously the direction of the dollar will be determined by the FOMC today, but further losses can target strong support at 1.0690/70.
