FX Technical Daily – 27th July

As illustrated above, AUD/USD is currently forming a ‘right shoulder’ pattern.

Previously candles have been trading in a choppy range, however, you can see that the current candlestick has created a wick above that general range, suggesting a break to the upside.

The orange area represents a previous Weekly high, which is the most relevant resistance for this pair.

Continued USD weakness should see this pair stage an attempt to test that resistance zone.

EUR/AUD is at an interesting spot, although Euro pairs across the board have rapidly ascended in the aftermath of dollar weakness coupled with a positive outcome from the EU recovery fund meeting, there is a weekly resistance trendline which could hinder further upside.

Traders should keep a note of this trendline, a break above is likely to see prices trading back within the channel structure. In contrast, a fall below the trendline could see more of a medium-term bearish move.

CAD/JPY is currently trading in a consolidation, noticeably between 78.450 and 79.600. Traders are advised to watch price closely at current levels with price testing the lower 78.450 range , a rebound could see another visit back to 79.600.