 Tools for TradersTop Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action InsightCAD, AUD, NZD All Suffered as Trump Stepping on Protectionist Acceleration Pedal Yen maintained solid strength throughout last week as it ended as the strongest one. Meanwhile, the fortunes of commodity currencies suddenly reversed towards the end. Canadian, Australian and New Zealand Dollar ended as the three weakest ones. Some blamed the selloff in commodity currencies to Dollar's strength. But the greenback just ended marginally higher against Euro and down against Yen and Sterling. US long term yields weakened, in particular in 30 year yield. Dollar index stayed in range well below 91 key resistance handle. While markets increased their bets on a Fed rate hike this week, they're paring bets on a June hike. So, traders dumped commodity currencies for some other reason. And we believed it's because of trade war on these countries. Technical OutlookAUD/USD Weekly Outlook AUD/USD's rebound was limited at 0.7915 last week and reversed. Subsequent sharp fall and break of 0.7712 support indicates resumption of whole decline from 0.8135. Initial bias stays on the downside this week for 0.7500 key support next. One of the interpretation of recent price actions is that price action from 0.7758 to 0.7915 were a three wave consolidation pattern. If that's true, the fact that 0.7712 was well below 0.7758 indicates strong selling pressure even inside that consolidation. That is, decline from 0.7915 would then be a very powerful move that could takes out 0.7500 easily. We'll keep an eye on it to see if there is any further downside acceleration ahead. USD/CAD Weekly Outlook USD/CAD's medium term rise resumed last week by surging to as high as 1.3099 last week. 1.3065 medium term fibonacci level was taken out already and there is no sign of topping yet. Initial bias remains on the upside this week. USD/CAD should target 161.8% projection of 1.2061 to 1.2916 from 1.2246 at 1.3629 next. On the downside, below 1.2984 minor support will turn intraday bias neutral first. But near term outlook will stay bullish as long as 1.2802 support holds. Suggested ReadingsWeekly Economic and Financial Commentary: Inflation Showing Signs of Taking a Bite Out of Growth The Weekly Bottom Line: U.S. Economic Boom to Last Through 2019 Week Ahead: Fed, BoE, G20 in Focus US Fed and BoE to Guide Markets Week Ahead – All Eyes on FOMC Projections; Pound in Spotlight as UK Data, BoE Awaited Australia & New Zealand Weekly: Near Term Positives Set to Fade for Commodities Japan Releases Trade Figures as Yen Increasingly Challenges Multi-month High Versus Dollar Trade With Our Partners
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