SONIA: Call spread buyer

• RES 4: 0.7556 High Oct 28, 2021 and a key resistance
• RES 3: 0.7532 High Nov 2, 2021
• RES 2: 0.7441 High Mar 7 and the bull trigger
• RES 1: 0.7368 High Mar 10
• PRICE: 0.7243 @ 07:11 GMT Mar 14
• SUP 1: 0.7223 - 50-day EMA
• SUP 2: 0.7141 Low Feb 25
• SUP 3: 0.7095 Low Feb 24 and a key support
• SUP 4: 0.7052 Low Feb 4

AUDUSD is trading lower today as the pair extends the pullback from 0.7441, the Mar 7 high. The continuation lower suggests potential for a deeper correction and this means the price pattern on Mar 7 - a bearish shooting star candle - remains in play. The move lower has exposed the 50-day EMA at 0.7223 - a key support. The primary trend remains up though. A reversal higher would refocus attention on 0.7441, the bull trigger.

• RES 4: 130.29 High Feb 25
• RES 3: 129.81 61.8% Retracement Feb - Mar Downleg
• RES 2: 129.28 50-day EMA
• RES 1: 129.04 High Mar 11
• PRICE: 128.58 @ 07:01 GMT Mar 14
• SUP 1: 127.42/126.01 Low Mar 10 / Low Mar 9
• SUP 2: 124.40/28 Low Mar 7 / 50.0% of the 2020 - 2021 bulls cycle
• SUP 3: 123.45 1.618 proj of the Jan - Sep - Oct ‘21 price swing
• SUP 4: 123.01 Low Nov 20 2020

EURJPY remains in a short-term uptrend following last week’s gains and the cross is trading closer to its recent highs. The 50% retracement of the Feb - Mar downleg, at 128.77, has been probed. Clearance of this hurdle would suggest scope for a stronger recovery towards the 50-day EMA at 129.28. Recent gains are still considered corrective though and trend signals such as MAs continue to highlight a downtrend. Initial support is at 127.42/126.01.