Good day to all and happy week ahead. We are starting the week with $ under pressure and serious breakdown levels in the Dollar index. I was expecting a Dollar bounce from last week, but it was not delivered. Not only that, this week the Dollar index is breaking to new short-term lows. We are still at the start of the week, so during the next couple of sessions we could finally see the much awaited bounce. Oversold short-term conditions and bullish divergence signals imply that we will see it soon, but no reversal confirmation yet.
One of the pairs that has reached critical support and is bouncing off cloud support, is the AUDUSD which is usually tracking Gold moves. So a bounce to follow Gold’s recent rise should be seen here soon.
If AUDUSD breaks below 0.76 there are a lot of chances we see the 61.8% Fibo before any new upward move to new highs above the double top at 0.7740.
NZDUSD has the potential to move towards 0.72 as long as price is trading above 0.70.
If price breaks below 0.69…very BEARISH breakdown for NZDUSD of long-term sideways channel….
More analysis for the rest of my fx pairs in the comments section. Have a nice day and thank you for taking the time to catch up on my thinking.