Despite the huge fall in EURAUD because of ECB’s monetary statement, our outlook for the currency pair hasnt changed.We’re still bullish on it. It went up almost 500 pips this week from its last week’s friday’s close.
However we’ll be seeing a strong resistance between 1.605 and 1.656. H4 major supply area at 1.593 to 1.605.
We can see a strong rally till it hits its strong resistances and supply areas, and since its AUD , fluctuations may cost us a minimum movement of 50-100 pips. Greater risk for a greater reward currency trading. Please be guided accordingly.
We were looking at a possible rally to 194.76 since November 2015 at this pair, but fortunately it wasn’t able to overcome its weekly resistance at 186.9 – 189.5 Price declined 2280 pips in span of 3 months hitting its new support at 163.9. We are still looking at a bearish GBPJPY despite BOJ’s recent negative interest rate announcement. However, GBPJPY have recorded a major daily supply zone at 167 – 164. Hourly prices are below Ichimoku clouds and 200SMA, and RSI is at 38 level.
A weak currency against a newly weak currency. We were seeing a relatively strong Yen this past few weeks until
its recent BOJ announcement, however AUD has been relatively weak especially this year as China’s economic slowdown
have been very imminent to every market, be it in currency, equities, bonds and commodities. As of this week, AUDJPY
finally resumed its bearish run as it went pass thru 85.90 – 85.39 giving us a total of 270 pips. Heading to its weekly support at 82.2 – 81.2 and 79.2. Prices are below ichimoku clouds and 200 SMA, weekly RSI level is at 41.
Disclaimer : This is not a RECO to BUY or SELL. No Absolute absolutes. Trade at your own RISK. Currency and Equity trading carries high level of risk, please see your financial adviser first before entering the market.