AUDUSD – Daily Chart
The AUDUSD is nearing a clear trend resistance line. Price looks like it is struggling to reach the most recent swing high and may not be able to move higher. The moving averages have just crossed bearish, suggesting that the selling momentum is increasing. There could be a selling opportunity at the trend resistance line but beware of the longer-term trend support currently at 0.7270. A bearish move is likely to stall as the trend support is tested or could even reverse and form a tightening triangular consolidation pattern.
Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the AUDUSD to move lower. There was negative AUD news data during the last trading session and a no change announcement to Australia’s cash rate. It has also been announced that the recent election results in Australia may cause a downgrade in their credit rating. This news events could weaken the AUD.
USDCAD – Daily Chart
Price is nearing a clear trend support line, providing possible long opportunities. The bearish moving averages are also tightening, suggesting that selling momentum is weakening and buying momentum is increasing. If price does move higher, there is a clear horizontal resistance around 1.3150. Price may stall or reverse around this level.
Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors are likely to carry on buying safe heaven assets like the Japanese Yen, the US Dollar and GOLD. This could help the USDCAD move higher over coming days and weeks. If the OIL markets appreciate though, we could see the CAD strengthen. This may cause a slightly hesitant and indecisive USDCAD.