Tuesday, March 18, 2014
The EUR/USD was fairly flat, but slightly negative for most of the trading session as investors maintained a neutral stance ahead of tomorrow's FOMC announcement and geo-political risk in Ukraine.
For today, the common currency traded within a 63 pip range, with an intraday high at 1.3943, and the intraday low at the 1.3880 support level. This price action comes on the back of poor German ZEW Numbers, in which the German headline fell below the forecast to 46.6, which applied pressure on EUR/USD.
However, it was the Mixed US Data, with CPI numbers remaining flat, along with slightly weak US Housing Starts and an increase in Building Permits that kept this pair well-supported or contained around the 1.3900 handle.
Monday, March 17, 2014
For today's technical analysis review, we briefly analyze the price action in AUD/JPY and discuss the reasons for the risk appetite in the market. For the moment, investors have chosen to ignore some of the geo-political concerns between Ukraine and Russia, and focus on the domestic, underlying fundamentals for each economy. For this reason, you are seeing an unwinding of the "flight to safety" move that we experienced on last week, and many aussie bears are being squeezed out of their short positions to produce a rally in AUD/JPY. The AUD/JPY rallied 138 pips from the intra-day low at 91.17 to resistance at the intra-day high at 92.55. The pair is currently in consolidation awaiting a breakout during the Asian trading session. We expect to see a continuation of AUD strength as geo-political fears continue to take a back seat and good Australian economic data supports the short covering rally.
In today’s technical analysis session, we described price action in AUD/JPY and identified common areas of support & resistance for trade entry.