Price action traders are enjoying their AUDJPY shorts as price dives deep into profit. Meanwhile, Dollar bulls tear through the previous yearly high to establish a new high for the year.
After a few days of consolidation, AUDJPY has finally begun its descent lower. This trade is currently in +100 pips of profit as the price has successfully reached the swing low created back in November of 2020. The current weekly candle is sufficiently bigger than the previous two months of price action, indicating further profits should be expected.
The target for the US Dollar Index to start the week was this year’s high at 93.170. Bulls in the market had no trouble attaining and breaching this level this week. Based on the higher time frames, the next suitable target is weekly resistance near 93.900. As the Dollar has shifted into an uptrend, a rally to this level is likely.
With further Dollar bullishness expected, traders can predict lower AUD and NZD prices. Potential shorts for NZDUSD and NZDJPY should be explored as both pairs are looking for a considerable push lower.
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- Read our previous blog article: Dollar Struggles at July’s High + NZDUSD Looks to Break Key Support
