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AUD/USD H&S neckline

 

 

TAKEAWAYS

 


•    US dollar rises after initial jobless claims reach new post-pandemic low
•    USD/JPY trades towards the top of its 2-week 100-pip trading range
•    Oil price unwinds ‘Suez tanker’ gains, Brent crude drops 4%
•    Gold dips as dollar index pushes into new 2021 highs
•    Bitcoin holds $50k as support 
•    Dow, S&P 500 & Nasdaq close higher after 2 days of losses
•    ‘Meme stocks’ GME and AMC rally day after disappointing GameStop earnings
•    USD/MXN drops 1% after Mexico central bank leaves rates unchanged
•    Joe Biden doubles vaccine goal to 200m Americans in 100 days in 1st press conference
•    Fed officials Clarida, Evans and Barking agree inflation could rise temporarily 
•    ECB’s De Guindos says Eurozone likely to shrink in H1

 


BEST CHART
AUD/USD – Daily Candlesticks

 


 

Source: GKFX / MT4 (March 26, 2021)

 

AUD/USD is testing the neckline of a Head & Shoulders pattern on the daily price chart. A projection using the height of the pattern would take the currency pair back down to the 0.71 handle. The bearish shift in trend is confirmed by a broken rising trendline. 

 


GURU WISDOM

 


“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.” – Michael Marcus (Market Wizzard)

 


MARKETS

 


*Daily closing price
↘ EUR/USD    1.1772        (-0.34%)
↗ GBP/USD    1.3734        (+0.37%)
↗ USD/JPY    109.18        (+0.42%)
↗ S&P 500    3909.52    (+0.52%)
↘ Hang Seng    27,899.61    (-0.07%)
↘ Gold        1731.82    (-0.39%)
↘ Oil (Brent)    61.79        (-4.07%)
↘ Bitcoin    52,152        (-0.37%)

 


NEWS

 


Major forex pairs trended lower again on Thursday with USD/JPY rising back over 109 to the top of its 14-day trading range. 

 

There has been a lot of Fed Speak to get through. The Takeaway on Thursday was that some Fed officials agree there will be temporary inflation this year and that it will not be a reason to raise rates. That lifted the dollar but bond yields were little changed and gold dipped slightly but remains comfortably above $1700 per oz.

 

The pause in the bond market rout helped stock markets recover with the S&P 500 snapping a 2-day losing streak. There were numerous swings in and out of positive territory throughout the day as sentiment remains fragile. 

 

The price of oil remains volatile as the huge tanker ship remains lodged in the Suez Canal, disrupting oil supplies. However, the market looked through the crisis quickly, sending the oil price lower again.

 


DAY AHEAD 

 


*Times in GMT
07:00 – UK Retail Sales (MoM)(Feb)
09:00 - IFO – Expectations (Mar)     
12:30 – US Personal Spending (Feb) 
 

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