Commodity (risk off) currencies go to the edge but don't jump

Technical Analysis

Author: Greg Michalowski | nzdusd

Test some key technical levels at the extremes

The commodity pairs/risk off pairs, went to a technical edge in each, took a look, but did not jump.


Looking at the USDCAD, the 1.3000-03 area is home to the swing high from last Friday and the underside of a broken trend line on the hourly chart.  The price moved right to that level and backed off. The pair is trading at 1.2986.


The AUDUSD moved down to test the 200 hour and 200 day MA at 0.7788-92. The low reached 0.77878 and bounced. It trades at 0.77949 currently.


The NZDUSD fell to the 100 and 200 hour MAs at 0.7252-57 area. The low reached 0.77535 and bounced. We trade at 0.72652.

Sellers in the USDCAD and buyers in the AUDUSD and NZDUSD leaned against the technical targets as risk was defined and limited and the moves reversed.  

Are the pairs out of the woods?

We are at the whim of the stock market most likely and any headline news on the tariffs from the US (or tariffs coming the other way from EU perhaps).  So if you stuck a toe in the water against the levels (or want to lean too), keep a close eye on the levels and the price action/news.  Right now, the levels are winning. 

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