Technical Analysis January 4 2021
The AUD recovery came to a sudden halt yesterday at 0.7270 on USD strength.
Resistance today will be found in the 0.7220/40 area and if broken you can expect another run up to the previous high of 0.7270.
However, a failure at 0.7240 will increase the downside pressure to test 0.7160 and possibly 0.7120 in extension.
USDCAD found strong support on the dip to 1.2630
The US Dollar reaction from 1.2630 was strong enough to test resistance at 1.2780. The USD Bulls remain in control as long as the 1.2710/1.2700 level holds firm, further upside tests will be expected. A clear break of 1.2780 would target 1.2860.
However, if 1.2700 support gives way, the upside moment will be lost and a drop to 1.2650 will likely follow.
The Kiwi failed again at 0.6860 resistance and has dropped back towards support at 0.6770, a break down here would see further weakness to target 0.6740, and possibly the 0.6710 low in an extension
Resistance is now found at 0.6720, a break up here would relieve downside pressure and target 0.6760 again.
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