AUDUSD
Although the Australian dollar has slipped 5% off of its highs, the chart indicates that a bounce may be on the way. Prices have been falling in an ever narrower range, forming a falling wedge. This pattern signals a bullish reversal is likely, with a good chance of testing resistance near .99.
Oil
Oil has experienced significant volatility over the past two weeks, dropping from 88 to 80, and then quickly rallying up to 86. Prices dropped 2% yesterday after hitting resistance at 86, which is also just above the 62.8% Fibonacci retracement. Furthermore, prices have been forming a rising wedge, which is a bearish signal. Finally, momentum is clearly in favor of further declines, so traders should be looking to short.
EURJPY
Following up on yesterday’s analysis, after testing resistance at 111.75, the EURJPY dropped 2% yesterday. The quick drop to support near 109, suggests that more losses are likely in the short-term, and prices should easily sink to retest the 105-106 support area established in September.
Written by bforex.com
