In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the July 18th session.
USD/JPY — As you can see, we tried to rally initially during the day, but turned around to form a bit of a shooting star. There is a plenty of support near the 112.00 handle. If we can break down below there, the market should continue to go to 110.00. Ultimately, if we can break above the 113.00 level, we should then go to the 114.50 level. Either way, I think it is a binary trade. Pay attention to which direction we break and follow. I do like this pair longer term though, even though it appears that the Federal Reserve is going to be a little more dovish than previously thought.
AUD/USD — The Australian dollar broke out above, but it looks like the 0.7750 level should offer support as it was previous resistance. We should then go to the 0.8000 level. A break down below 0.7675 could send this market lower, but I like this pair typically as Gold has shown a bit of strength as well. I think we will find buyers on the pullback.