AUDUSD TECHS: Holding On To Its Gains
- RES 4: 0.7202 High Jun 9
- RES 3: 0.7141 76.4% retracement of the Jun 3 - Jul 14 downleg
- RES 2: 0.7069 High Jun 16
- RES 1: 0.7053 61.8% retracement of the Jun 3 - Jul 14 downleg
- PRICE: 0.6971 @ 16:39 BST Jul 29
- SUP 1: 0.6903/0.6859 20-day EMA / Low Jul 21
- SUP 2: 0.6786/6682 Low Jul 18 / 14 and the bear trigger
- SUP 3: 0.6647 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing
- SUP 4: 0.6588 Low May 28 2020
AUDUSD is holding on to its recent gains and the short-term outlook remains bullish. A continuation higher would open the Jun 16 high at 0.7069, and potentially 0.7141 further out, a Fibonacci retracement. A strong reversal lower would instead refocus attention on the 0.6682 bear trigger, Jul 14 low, where a break would confirm a resumption of the broader downtrend. Initial support to watch is at 0.6903, the 20-day EMA.
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AUDUSD TECHS: Key Support Still Exposed
- RES 4: 0.7202 High Jun 9
- RES 3: 0.7138 High Jun 10
- RES 2: 0.7083 50-day EMA
- RES 1: 0.6998/7069 20-day EMA / High Jun 16
- PRICE: 0.6882 @ 16:54 BST Jun 29
- SUP 1: 0.6862/51 Low Jun 29
- SUP 2: 0.6829 Low May 12 and the bear trigger
- SUP 3: 0.6805 Low Jun 22 2020
- SUP 4: 0.6647 0.764 proj of the Apr 5 - May 12 - Jun 3 price swing
AUDUSD traded lower into the Wednesday close, but the pair continues to consolidate above support at 0.6851, the Jun 14 low. Trend signals remain bearish and a resumption of bearish activity would signal scope for a test of key support and the bear trigger at 0.6829, May 12 low. Clearance of this support would confirm a continuation of the downtrend and open 0.6805, the Jun 22 2020 low. On the upside, 0.7069, Jun 16 high, remains a key short-term resistance.
EURJPY TECHS: Monitoring The 20-Day EMA
- RES 4: 146.74 High Dec 30, 2014
- RES 3: 145.00/58 Round number resistance / High Dec 31 2014
- RES 2: 144.58 0.764 proj of Mar 7 - 28 - Apr 5 swing
- RES 1: 144.28 High Jun 28
- PRICE: 142.95 @ 16:52 BST Jun 29
- SUP 1: 141.37 20-day EMA
- SUP 2: 139.45 Low Jun 17
- SUP 3: 138.97/37.85 50-day EMA / Low Jun 16 and key support
- SUP 4: 136.25 Low May 30
EURJPY traded higher Tuesday, delivering a fresh cycle high of 144.28. This high print has cancelled a recent 3-day candle pattern - evening star reversal. This reinforces the uptrend and a continuation higher would open 144.58, a Fibonacci projection. Key S/T support is at 141.37, the 20-day EMA. The cross has pulled back from yesterday’s high, a break of the 20-day EMA is required to once again highlight a potential top and short-term reversal.
US: Late Corporate Credit Update: Heating Up Again
Investment-grade corporate credit risk holding mildly high in late FI trade, upper half of narrow range as stocks recede amid thin participation: SPX eminis trading -9.25 (-0.24%) at 3816.75; DJIA +65.12 (0.21%) at 31010.79; Nasdaq -39 (-0.3%) at 11142.58.
- Investment grade risk measured by Markit's CDXIG5 index at 100.174 (+0.854); CDXHY5 high yield index at 97.132 (-0.418).
- Outperforming credit sectors (tighter or least wide): Health Care and Industrials sectors both (+0.9) followed by Technology and Utilities (+1.1).
- Lagging sectors (wider or least narrow): Materials (+3.1), Consumer Discretionary and subordinated Financials both +2.2.
