AUDUSD continues to consolidate and this pause in the downtrend appears to be a bear flag, reinforcing bearish trend conditions. The recent break of support at 0.6682, Jul 14 low and a bear trigger strengthened a bearish case and this maintains the broader downward price sequence of lower lows and lower highs. The focus is on 0.6337 next, the Apr 24 2020 low. Initial firm resistance has been defined at 0.6610, the 20-day EMA.
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A bearish theme in AUDUSD remains intact. The extension lower last week strengthened bearish conditions and confirmed a resumption of the bear leg that started Aug 11. The move lower this week reinforces the bearish theme. Attention is on 0.6682, the Jul 14 low and a key support plus an important bear trigger. A break would confirm a resumption of the broader downtrend. Key short-term resistance is unchanged at 0.7009, Aug 26 high.
EURJPY continues to climb as the Yen stays offered. This week’s impulsive gains reinforce current bullish conditions and the move higher maintains a positive price sequence of higher highs and higher lows. The cross has cleared resistance at 142.32, the Jul 21 high. The break opens 144.28, the Jun 28 high and the next major resistance. Firm trend support is seen at the 20-day EMA. The average intersects at 138.44.