Yesterday's formed a and we can expect a dip to 0.7705, a preferred level to take long positions
First target comes in at 0.807
Leave the second target to 0.89 (Long term, at least 2 months) and move to 0.78 when first target is reached.
- Initial risk is for a rally to 0.807
- On daily close above 0.781, move both trades to BE
- When trade 1 reaches TP, move trade 2 SL to 0.78
- Collect +ve swaps as well
- RBA could sit tight going forward on recent Q1 GDP print of 0.9% + better than expected jobs report
- FOMC next week see's no change but could maintain a hawkish view on rates
- USD likely to decline in the run up to rate hikes
Dollar/10yr Treasury spread chart below shows a potential rally to 42, which if holds could see a renewed decline to the downside after a break of the rising . Next support at 36 and then 31 if 42 forms resistance.