• First and Second Targets Met On EURJPY Short: + 75 Points Average
• AUD/USD Looking Heavy Above Daily Trendline Support
• EUR/AUD Resistance At 1.7000 Should Help AUDUSD At Fib Support

EUR/JPY short trade was as a brilliant example of why orders are the preferred deal type of technical traders. The 141.65 entry price dealt for no more than 10 minutes before imploding Sunday night in Asia, and our second and final target of 140.65 had its four seconds of glory before reversing hard all the way back to our entry. In both cases, resting associated orders allowed the trader to capitalize on brief and swift market movements without having to be in front of the screen to pounce.

So on to the bad news, so to speak. While EUR/JPY clipped our second target, USD/JPY rallied like it was going out of style from the 115.50 range lows, which means the Dollar continues to range trade. The primary market movers continue to be the commodity currencies, namely Aussie and Kiwi, as the Japanese fiscal years draws to a close. Aussie is consolidating above a daily downtrend support with a few minor Fibs supporting price, but the real Fib zone is about 70 points lower at around 0.7100. Look for the market to go after sell stops below the daily trend line pushing price into the 0.7085-0.7110 zone.

Look to offer AUD/USD anywhere below 0.7200 with stops above 0.7220 for a move lower to the 0.7110-0.7085 zone. As Aussie approaches this level, look for confirmation from the Aussie cross on the move, EUR/AUD, to find resistance below the daily trendline at 1.7000.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.