News & Analysis
Eightcap Forex technical insights; AUD showing signs of a fightback to safe-havens
Italy, continuing US-China trade fears drive a rush to safe havens.
What a week it’s been so far, Political turmoil in Italy has sent markets crashing. Safe-havens have been strong demand this week and we’ve seen strong falls from risk to the USD and Japanese Yen. Overnight stocks plunged and the EUR went for bad to worse. The EURUSD and EURJPY have both lost over 750 pips since April. The Damage on the GBP has been as bad to worse, the GBPUSD dropping 1090 pips since its April 17th. The EUR and GBP are far away from showing any signs of support or change in momentum at the moment.
Out of the three main risk currencies, the AUD has faired the best. Signs have started to develop that sellers are running out of momentum. Tonight’s London and New York sessions will be key in showing a change in seller commitment. Let’s take a look at some daily charts.
AUDUSD – sellers took price 105 pips lower from May 22nd highs. This weeks low failed to test the low on the 16th of May. This sets up a new higher low. We’re looking for buyers to hold today’s low and confirm the new higher low.
AUDJPY – as with the AUDUSD we’ve had a fist low come in and a second higher low, this was followed up by a lower high but the last low was a higher low, this point set up a rally to a new higher high. The current move lower has set up a new lower low tail, this point lines up with the last higher low developing potential support from 81.20 down to 81.00 which has defended five attempts. While these two levels can continue to hold we could be seeing developing buyer strength.
Good trading from Eightcap
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