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Euro, Yen and AUD Short-Term Positive Corrections against the US$

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Although the US currency retains an underlying bullish tone versus the major currencies, Friday losses post the US Employment report, leaves a more positive tone for the Euro, Yen and Australian Dollar. Early this week, the bias is for corrective gains for EURUSD and AUDUSD (maybe for a base) and for a USDJPY corrective setback.

EURUSD

  • A firm bounce from midweek through modest 1.0960 resistance Friday to leave a correction higher early this week.
  • However, the prior August setback from 1.0990/99, the probe below 1.0868 support, the July push below 1.0819 and July stall back from ahead of 1.1216 aims lower for mid-August.
  • Early this week, however, we see an upside bias for 1.0990/99; break here aims for 1.1050/60, maybe closer to 1.1114/29.
  • But a push below 1.0904 opens risk down to 1.0846 and maybe 1.0807.

Daily EURUSD Chart

EURUSD Chart

USDJPY

  • A setback Friday through support at 124.50, back from a prod up to 125.07 leaves a correction bias lower into Monday.
  • However, the push last week above 125.00 reinforced the previous push above 124.48 and alongside the late July rally from our support area at 122.90/85 leaves a bullish outlook for mid-August.
  • Early this week however, we see a downside bias for 123.97; break here aims for 123.48/30, which we would look to try to hold.
  • But above 124.50 opens risk up to 125.01/07.

Daily USDJPY Chart

USDJPY Chart

AUDUSD

  • A far more positive tone last week after the RBA statement Tuesday to surge higher, and again Friday to push above the down trend lines from June and May.
  • This has more than just eased bear extension pressures with strong bias for a base and neutral shift into early August (only above .7499).
  • Whilst below .7499 we see a still bear theme for August, but growing risk is for a push through here and a switch to a broader range theme.

Daily AUDUSD Chart

AUDUSD Chart