AUD/USD: 0.7735EUR/USD: 1.1160Despite the ongoing Greek negotiations to reach a bailout, some decent EU manufacturing PMI's and a soft US Durable Goods figure, the dollar powered higher today against all the EU majors, underpinned by rising yields, and in the US session, by some hawkish comments on US rates from the Fed's Powell. Momentum seems to be picking up for the dollar, and a decent US GDP reading later in the coming session could well see further gains. Other highlights will include the BOJ Minutes, the German IFO and the endless Greek bailout talks.
The Aud is currently close to session highs (0.7748) after having recovered from a quick move down to a low of 0.7679 following the hawkish comments from the Feds Powell. The US$ was unable to maintain its strength though and the Aud quickly recovered, currently sitting just below the 200/100 HMAs at 0.7745/55.
The charts are rather non-committal and a choppy sideways session appears to be in store, leaving the technical points largely unchanged.
On the topside, a break of 0.7750/55 would then head back towards 0.7770 (100 DMA) and to 0.0.7795 (55 DMA). Above this looks unlikely today, but further strength would open up last Friday’s high at 0.7813a break of which would then head to last week’s 0.7848 high (50% pivot of 0.0.7532/0.8162). Further out the Aud could potentially head towards 0.7880 (50% of 0.8162/0.7602) and on to 0.7900 and to 0.7943 (61.8% of 0.8162/0.7602).
The downside will see bids again at 0.7700 and at 0.7665/70, where the channel base will provide support, although I don’t think we get there again today. If wrong, look for a break to take the Aud to the 17 June session low at 0.7645, ahead of further support at 0.7630 and at 0.7600.
Overall, I suspect that we should expect more range trade within the 0.7800/0.7600 area for some time to come.
Jim LanglandsFX Charts www.fxchartsdaily.com
