AUDUSD
The Australian dollar bounced smartly on Friday, bringing levels up to a critical region. Prices stopped right at the 61.8% Fibonacci retracement which often provides significant resistance. The rally stopped just shy of the very strong resistance area between .9950 and 1.0000, which may prove difficult to penetrate. This may be a good place to take some profits, and wait to see if this is just a downtrend bounce, or if another rally is underway.
EURUSD
Friday’s dollar selloff pushed the Euro through the upper channel line, and right through the 1.33 resistance area. Assuming this is a genuine breakout, the next small hurdle is the previous swing low, just above 1.34. 137.50 marks an area of significant resistance, and that might be the first major resting point if a rally can get started.
Oil
Oil has proven to be an extremely difficult market to trade lately, with a lengthy consolidation, an impressive breakout that quickly reversed, and now another quick run up. On Friday, prices managed to break out above the 88.50 resistance area, suggesting additional gains area likely. As we have noted in the past, the area around 90 is riddled with resistance areas that have been in place for years, so a further extension to recent parabolic move is questionable. I’d recommend staying on the sidelines here, since the whiplash volatility is likely to hurt most traders.
Written by bforex.com
