Not much in the way of price action today for AUDUSD. The market is in a sideways pattern at the moment, holding about 90 pips above the close of the pin bar from May 2nd. We can see from the chart below that price seems to be contained by the short-term resistance at the .9375 level.
Although today’s close was somewhat bearish, this doesn’t give much cause for concern because the overall trend is still up. Furthermore, the size of today’s bar isn’t large enough in comparison to previous days to raise any red flags that we’re due for a reversal. That said, this is the Forex market so always trade with the unexpected in mind.
The USDJPY was able to hold the bottom of the wedge formation that I mentioned in Friday’s post. The pair gained about 40 pips today, bringing it 40 pips closer to the next resistance level at 102.70.
This is a bullish wedge formation seeing as we’re coming off a very strong uptrend in USDJPY that started in October of last year. This gives reason to believe that a break to the upside is favored, which provides us with two resistance levels to watch. The first level is 102.7 which is represented by several highs over the past few months. The second level is the upper wedge boundary as marked by the second arrow in the chart below.
A quiet day for EURNZD still coming off the pin bar that was covered in last Thursday’s post. The 1.584 level looks to be the next area that may provide some support.