The AUD/USD Bearish Trend Is Exhausted

It appears a correction is in order for AUD/USD as the bearish trend seems exhausted – the pair formed a sideways consolidation for the past few days – and there is also a hammer candlestick above the support at 0.7150 which was a signal that a move to the upside was imminent. Such a move did occur and although the pair is still struggling to break above the resistance at 0.7250 I think it is very likely for it to continue moving to the upside towards the next major level of resistance at 0.7280. A breakout above that level could lead to a further climb towards 0.7380, which is (MA)89 on the daily time-frame.

USD/JPY Reached 111.40

USD/JPY has been moving to the upside for weeks now, ever since it reached the support at 106.00 and today it finally reached the resistance level at 111.40. So far, however, the trend has been bearish and a reversal is still nor confirmed, especially considering that the pair hasn’t formed a new high above the previous high at 111.88. Right now there are two probable scenarios – USD/JPY will either break above 111.40 and continue climbing towards 111.88, which also coincides with the (MA)89 on the daily time-frame, or it will bounce off the current resistance level at 111.40 and start falling back towards the support at 109.00.

Gold Is Still Falling

As I expected, Gold reached $1,220 and not only it reached that level, but it also managed to break below it. Its next target is likely $1,200 which is (MA)89 on both the weekly and monthly time-frames, which means it is a pretty strong support level, not to mention that Gold has tested it twice already, as you can see on the screenshot above. So whether or not it will be able to break below it now is debatable. If it does manage to do so, the move to the downside will probably continue and Gold will fall towards $1,170. On the other hand, if it bounces off $1,200 again, it will likely start climbing back towards $1,260.