AUD/USD has been struggling with 0.7700-50 resistance for quite a while now. Most market participants are not expecting any surprises from the RBA tonight - neither in form of a change in interest rates nor in the monetary policy statement. However, if the RBA keeps rates unchanged and doesn't add any new, dovish comments to its statement, the market may see this is as one hurdle cleared for the Aussie and push the currency higher. A daily close above 0.7750 would be significant, and pave the way for a 0.80 test.
EUR/GBP has posted a fresh multi-year high and further gains seem likely. We have to zoom out to 2012 and 2013 to find the next notable resistance levels, which lie around 0.8820 and 0.90.
NZD/USD has been quiet lately and stuck in a descending triangle formation. Key support is seen in the 0.7200-20 area and a break below would signal a move back into the lower 0.70s.
In USD/JPY, the trendline resistance from the May high has held brilliantly, but it is slowly marching higher and seems to go for another test. 102.20 is the key resistance level to watch, but a break above would pave the way for 104.00.
USD/MXN continues to move lower after the double top at 19.90 was posted. MXN short positioning is at a record level, so the chance of a short squeeze is decent. Watch the 19.00 level, as there will likely be some position covering from short-term speculators if we break below it. Medium-term, it would likely take a break below $18.00/10 to trigger a larger MXN short squeeze.
