EURUSD- The structure of the euro's decline suggests a near-term rebound is underway with pullbacks offering favorable entries for short-term topside scalps. Ultimately a tag of 1.25-level may be in the cards with key technical resistance coming in around 1.2550 (38.2% retracement of the decline off the March highs) For a complete technical outlook on the EURUSD, refer to today's Winners/Losers report.
AUDUSD Im currently holding a small short position against the overnight highs from 1.0510- Initial objective 1.0480 and 1.0450 (61.8% Fibonacci extension taken from the 6/28 and 7/24 troughs). Note that a breach above the overnight highs at 1.0536 exposes topside rally to 1.0580.
It's important to stay nimble as trade thins ahead of the Fed tomorrow, with the ECB, BoE, and NFPs on tap later this week.
---Written by Michael Boutros, Currency Strategist with DailyFX.com
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