After an interesting seven days of trading, volatility has subsided and now we have some time for one camp to lick their wounds and for the other to take a rest and count their profits. The US dollar is a bit stronger and it looks like dollar buyers will try to gain control over the market in the next few days. On the other hand, for example, on the EURUSD and AUDUSD, we are on the strong supports where a possible bounce could result in a stronger USD.
EURUSD is defending the support created by the high from August 2015. Sellers have tried to break it few times already, but to no avail. The price being so close to the support creates a nice trading opportunity with a desirable risk-to-reward ratio.
AUDUSD defended the upwards trend line and the 23.6% Fibonacci. We only have one resistance left before we get a full buy signal – the upper line of the flag.
EURJPY is defending the neckline of the mid-term iH&S. The trend is positive and the iH&S could show us the low point of the recent bearish correction.