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.
Tuesday, March 11, 2014
Today's US trading session was a continuation of the mild price action we've been seeing across multiple currency crosses post the major economic headlines from last week. For today, the EUR/USD only moved within a 45 pip range from the session high at 1.3879 to today's low at 1,3834.
It has pared back most of it's losses from earlier in the trading session and the common currency is currently flat for the day. Although the EUR/USD is moving within a corrective or consolidation pattern, signs within price action are pointing towards a breakout to the upside and more euro strength leading into the next trading session.
In today's webinar, we discussed price action in the EUR/USD pair and the technical and fundamental reason's for the sell-off in the common currency. We also identify areas of support and resistance that you can use when setting up future trades.