Wall Street opened the trading week on the green territory. Indices gained more than 1% and the technology sector keeps leading the market. NASDAQ is far by just few percents from the annual highs, which are actually 10-years high. S&P has to overcome the resistance at 1260 points on its way to 1300 points.
USD/CAD
The US dollar lost its strong momentum it had just few weeks ago against the Canadian dollar. In fact, as we mentioned few time on the recent analysis, the strengthening of the major currencies against the USD was caused by the risings in the stock markets. Otherwise, the USD would have probably continued gaining points. The pair is about to retest the strong support at 1.0.
Today is published overnight rate, along with the BOC rate statement. That might make this pair more volatile than usual so extra precautions are necessary here.
AUD/USD
We have waited for this pair to break-up for several weeks and yesterday it finally did: The pair broke through the strong resistance of the 200 SMA. No doubt, many traders and automatic order were waiting for the cross of the 200 SMA at 1.04. The break-up is seems to be successful so far, as the pair jumped 100 pips. 1.05 is a psychological resistance, but the AUD should not have problem with breaking it through if it keeps the current momentum. The potential target of the current bullish session can be around 1.07-1.08, but keep in mind that the more it rises, the more are the chances for correction to occur.
AUD/JPY
The JPY is showing signs that the recent declines of USD/JPY were real and it has intentions for additional strengthening against the USD. Its biggest test is to break-down 76 and continue to 75. The Aussie, as stated, is in a bullish mode as well and therefore the pair AUD/JPY can be tricky. The current resistance is at 80.0, which the pair failed to break last week. A strong break-up there can hit 82 and start a new uptrend movement. The support at 78.0 is important for the AUD in order to keep rising against the JPY.
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