AUD/USD dropped 247 pips in 5 days from 0.7812 to 0.7565 or 49.4 pips per day. No correction yet to deeply oversold and below 0.7572 represents out of bounds for AUD. Bank of America forecasts 0.7100 on this efx site. This is the site where banks make erroneous calls to hedge funds, coupled with fancy pictures and high falutin jargon like USD/JPY rose to 109’s due to Japanese Importer interests. Meanwhile no mention to an interest rate drop to assist another 400 pip loss. AUD claims this bank has ability on its own based on yield spreads.
Seen AUD short interest rates lately, trading at exorbitantly high levels and generally this implies giant AUD supports on interest drops. Same concept when weeks ago, USD short rates began trading higher. It implied USD supports and the USD/JPY rise was seen from miles away because USD/JPY was forced higher as it didn’t have anymore to go.
Meanwhile the bottom of the 5 year average from 0.8106 is located at 0.7292. USD/AUD bottom in its 5 year average from 1.2451 is located at 0.7334. Another 400 pip drop assumes EUR/USD dives 400 pips to trade to 1.1800’s and breaks its 5 year average at 1.1951. But the ECB is talking interest rate rises and abdication from QE. No accountability for actions is what wins awards on the retail trading sites.
Leo Tolstoy. The 2 most powerful warriors are patience and time. Seems appropriate.
EUR/USD from current 1.2206, vital break point above is located at 1.2240. Below, where to, not below 1.2148. Strong supports located at 1.2179 and 1.2172 then 1.2163 on breaks. Look for bounce at 1.2172 and 1.2179 to 1.2191.
GBP/USD broke above vital 1.3948. At 1.3956 vital support then 1.3948 and 1.3929 and 1.3911 bottom. Above 1.3948, targets are 1.3998 and 1.4028. By the way, any 1’s in a GBP/USD forecast. If not, pips are wrong so says the BOE. Don’t waste pips.
GBP/JPY. Current 152.27, vital break point 150.94. BOE’s job is control GBP/JPY or they lose GBP/USD. Up target 153.14 on break of 152.74. Watch 152.74 for reversal to 152.57 then 152.48.
USD/JPY. Vital break point 108.25. Up target 109.64 on break of 109.41. The reverse to 109.28 and 109.21.
NZD/USD. Vital break point 0.7231. Up target 0.7123 on break of 0.7114 then reverse to 0.7104 and 0.7095.