AUD/USD: 0.7225EUR/USD: 1.0605It has been quiet today given the Thanksgiving Day holiday and looks like being much the same heading into the weekend, with most interested parties sitting on the sidelines ahead of the major risk events coming up next week. The ECB will meet on Thursday and then the US employment data and NFP are due on Friday. There is plenty of other data due earlier in the week and there will also be speeches from both Mario Draghi and Janet Yellen. For today, expect it to be quiet. The economic highlights will be the Japanese CPI and then later, the UK provisional GDP.
Yesterday’s surprisingly soft CAPEX data took the heat out of the Aud, and after topping out at 0.7261 it has since then traded between a rough range of 0.7210/40.
It looks like being a similar story today, and more choppy trade above 0.7200 would seem to be the most likely outcome.
In the event of a break below 0.7200, expect to see a run towards the Tuesday session low at 0.7185 (0.7180: 38.2% of 0.7015/0.7282) below which would open the way to the 23 Nov low at 0.7158. Further Fibo levels come in at 0.7115 (61.8%) and at 0.7080 (76.4%) although it looks unlikely that we head much below 0.7200 today.
To the topside, sellers sit at 0.7250, above which would see a return to the session high, a break of which could see a run towards 0.7295 (76.4% of 0.7381/0.7015) and to 0.7300. Beyond here seems unlikely for a while, although if wrong, the next realistic targets would be seen at 0.7363 (16 Oct high) and then at 0.7381 (12 Oct high)..
Jim LanglandsFX Charts
