AUDUSD traded sharply lower Monday, reinforcing the bearish significance of the latest reversal and failure to remain above the 50-day EMA. The pace of the sell-off saw the pair show below the 3.0% 10-dma envelope indicator for the first time since the onset of the COVID pandemic in 2020. This further threatens the recent bullish price structure and attention is on 0.6829, the May 12 low and bear trigger. Key S/T resistance has been defined at 0.7283.
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USDCAD faded off the week’s highs into the close of the week, although the outlook remains bullish. Recent gains have resulted in a breach of 1.2914, May 2 high, and key resistance at 1.2964, the Dec 20 2021 high. The break of the latter marks an important medium-term bullish technical development and reinforces the positive outlook. This has opened 1.3168 next, the upper band of a MA envelope. Initial support is at 1.2914. Key support lies at 1.2714, Apr 29 low.
FI markets traded weaker after the bell -- 30Y Bond around upper half of the week's range but well off Thursday's highs. Little react to morning data (import prices lower than exp at +0.0%; U/Mich sentiment 59.1 vs 64 est, "lowest reading since 2013").
The final event of the US-ASEAN summit, an exchange of views on regional and global issues, has concluded. US President Joe Biden and the Southeast Asian leaders will appear at a White House joint press event shortly.