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AUDNZD & GBPJPY both hit Target 1

Market Analysis
2016-07-08_11-15-16

AUDNZD, Daily             

On Monday I looked ahead for a falling AUDNZD rate as news data and momentum continued to weigh on the pair. I wrote “A clear, breach and break of 1.0450 level on the Daily time frame will generate a SELL position with Target 1 1.0340 and Target 2 at 1.0173”.

In a highly volatile week my entry at 1.0450 was triggered on Tuesday (July 5th) and Target 1 at 1.0340 was reached this morning (July 8th). The Kiwi has had a strong week and continues today, Target 2 at 1.0173 remains the next level.

The GBPJPY post from Tuesday suggested that at 133.00 the pair could easily fall to 131.50 which it duly did in the following hours. As pressure on sterling continues and the flight to quality and safe havens rolls on Target 2 at 128.5 and 125.60 are still in play. As I stated on Tuesday “as we move lower these targets become more difficult to achieve, however, momentum is to the downside and although technically oversold, never underestimate the power of fear and greed”. 

 

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Stuart Cowell

Market Analyst

HotForex

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