USD flaunts its strength, AUD/USD consolidation ending – Kshitij Consultancy

FXStreet (Barcelona) - The Kshitij Consultancy Team gives the technical outlook for FX majors, commenting that the all-round dollar strength has led to a surprising price-action in the Pound and Euro, with the Aussie now expected to end its consolidation to resume lower towards 0.75.

Key Quotes

“The Euro has broken below its previous low of 1.1114. The Pound has also broken below the support at 1.5335-15 we were looking at. Dollar-Yen is also holding well above 119.50-40. The Aussie is stable.”

“While the decline in the Euro was expected (and further downside towards 1.08 now opens up), the break below 1.5315 in the Pound is a surprise. The medium-term uptrend since the Jan low of 1.4951 is clearly broken and further dip towards 1.5180 may well be seen. The Bank of England meeting is due today.”

Dollar-Yen is likely to trade indecisive between 119.25-120.25 for some more days.”

“The Aussie could be coming close to the end of its long sideways consolidation. The overall trend remains bearish for 0.75, possibly lower."

"But a break below 0.7750 will be needed to confirm the range break, else the range can continue for another 2-4 days."

"Overall Resistance seen at 0.79.”

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