US Dollar Bulls Continue To Push As AUD/USD Crushed Through Support

US DOLLAR BULLS CONTINUE TO PUSH

The past week has produced a noticeable shift in US Dollar price action, as bulls have continued to drive after the currency posted a higher-low at the end of January. Prices have moved above the 96.04 level and are now heading for a test of a trend-line projection as taken from the December and late-January swing-highs. If buyers can push through that area, another point of resistance potential exists around 96.47, which is the 23.6% retracement of the post-Election move in the currency. After that, the 97.00 level becomes of interest, as the 2019 high is just a little below this psychological value on the chart.

US DOLLAR FOUR-HOUR PRICE CHART

(Click on image to enlarge)

us dollar four hour price chart

Chart prepared by James Stanley

AUD/USD BULLISH TREND BREAKS DOWN

The Australian Dollar exhibited a bullish reaction at a key area of support after the Monday night/Tuesday morning RBA rate decision. Prices jumped from the key zone that runs from .7185-.7205, soon finding resistance at a trend-line projection as taken from the January and February swing highs. This could be soon open the door to topside themes in the pair.

But last night produced a noticeable violation of that support zone, and that theme no longer looks as attractive. Phillip Lowe, the head of the RBA, remarked that lower rates may bring on a weaker Aussie, and this comes in contrast to the tone from the RBA rate decision just a day earlier in which the bank avoided any easing signals in their statement. At this point, support has come in from a familiar area of .7125; and a bit lower is another area of interest at .7075.

AUD/USD TWO-HOUR PRICE CHART

(Click on image to enlarge)

audusd aud/usd two hour price chart

Chart prepared by James Stanley

EUR/USD TESTS BELOW 1.1400 AS SHORT-TERM DOWN-TREND CONTINUES

It’s been back-and-forth price action in EUR/USD over the past few months, and last week brought an item of excitement when the pair tested above the 1.1500 psychological level. That strength could not last, however, and bears soon came back to take control of matters. Since that failed breakout last Thursday, a rather consistent short-term trend has developed within this longer-term range; and this morning saw prices tip-toe below the 1.1400 level, setting a fresh weekly low in the process.

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