AUDUSD, USDSGD, USDCNH and EURAUD are moving very nicely according to the Tflow™ roadmap since the last 6 months. It is obvious where these pairs are trending and the river could provide a clue to the next optimum retracement zone.
Based on a monthly chart going back to 2010, AUDJPY has clear distinct levels and is breaking down systematically. Here it has clear proposition to test 52-week low at 80.50. After 80, 74 becomes an attractive proposition.
Based on CME Fedwatch Tool, market attaches a 96.3% of a 25 point rate hike at the coming June 2018 meeting. Another 25-point hike is highly expected in September but a total of 4 hikes or 100 points by end of year cannot be ruled out
Based on these patterns, we are in consolidation phase before main trend asserts itself. However I look at these 3 charts of AUDUSD, AUDJPY and SG30, bullish is not the word to describe.
This post looks at DXY analysis from a bullish and bearish angle. It might be confusing but I am merely point out how Dollar bulls and bears could justify their point of view. My unqualified observation: DXY could potentially go much higher. Maybe crazy enough to go back to 100 by end of this year.
AUDJPY is a potential downside continuation pattern currently doing consolidation. At the moment, it is at support from last year’s bottom. A new 52-week low printed first quarter this year suggests further lows. Negative implications to stock indices if previous correlation is still valid.
2 overlays, 8 charts of EURUSD, AUDUSD, NZDUSD, USDJPY, USDCNH, GBPUSD. Discussion of relative strength between major currencies, rotational play as well as their trend, major support and resistance zones.