Analysis from the Forex FX blog for Technical analysis updates.
The EURUSD is trading close to the 1.3260 – 1.3300 price pivot zone. This area has recently seen multiple rejections but the daily candle from Friday has moved deeper into the upper range which could be indicating that supply in this area is diminishing to a certain extent. COT data is also showing a continuation of the short covering that has been seen over recent weeks. The smallest net short position is now seen since the end of Feb.
The AUDUSD currency pair is trading close to the 1.0500 line in the sand after breaking below the key level earlier in the week. Price is currently at a retest of the broken trendline with a fib confluence level to the upside as per the attached D1 chart. Developments in China continue to influence the Aussie Currency exchange rate with the fear that her commodities could see a decline in demand. China’s Central Bank also set a Record Yuan Reference Rate on Friday. The net long AUD COT position continues to decline at 45.2k.