Just a quick update before heading off to visit some more Castles. As luck would have it the test of USDX 92.50, that I’ve been long waiting for, would come when I’m away on holidays. This test though is coinciding with some big levels on some of the major currency pairs making for interesting watching in the lead up to this week’s NFP. I used the word ‘floodgate” once before when the USDX was down at this support and was heartily mocked. However, IMHO, if 92.50 gives way this time then I do think we could see some very big moves. Price could well bounce back up from here though but 92.50 is the one to watch.
USDX weekly: watch for any break or respect of 92.50 this week with NFP:
Gold weekly: watch for any break or respect of the $1,300 psychological area. Any breakdown with the US$ would underpin further upside momentum with Gold and key targets are noted on the chart below:
EUR/USD weekly: watch for any breakout or respect of the 1.15 area. A bounce up from 92.50 with the USDX would suggest respect of this E/U 1.15 level but US$ weakness would support a bullish move for the E/U. Any bullish breakout might target areas noted on chart below:
AUD/USD monthly: note the bear trend line coming into force here. This trend line could come under pressure if the US$ weakens & breaks below 92.50 but watch for this week’s RBA decision to impact as well.
AUD/JPY: the 80 level is coming into focus so watch this for any breakdown or respect:
GBP/USD weekly: I have been saying for along time that 1.46 is a key level to watch here. Any bullish Cable breakout that evolves with potential US$ weakness would have me watching for tests of areas highlighted on chart below. Conversely, a bounce up with the US$ could be bearish for the Cable:
NZD/USD weekly: price is back testing 0.70 so any potential US$ weakness would have me looking for a test of 0.75. Conversely, any bullish bounce with the US$ would support SHORTS from this major 0.70 S/R level on the Kiwi.
USD/JPY weekly: I’m still on the lookout here for a test of the 100 /101.50 region here:
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