News & Analysis
Eightcap Forex technical insights; EUR & GBP remain at lows; AUD jump post RBA – Signs of a risk fightback?
Trade worries between the US and China continue to be a key supporter for the USD. Looking at the Cable Bexit continues as the key driver knocking the sterling lower. Fears of a non-deal exit from the EU keeping selling pressure directed firmly this week. The GBPUSD hit new 2018 lows last night and the EURUSD tested Jun price lows. The AUD has held up better than the EUR and GBP but continues to trade range bound. Today’s rate hold has given buyers some direction but price continues to trade in a tight range.
Pre-London session we’re seeing buying the AUDUSD showing the highest interest breaking yesterday’s high.
AUDUSD – buyers have added a decent rally post RBArate hold and statement. Price wise yesterday’s high has been beaten and new higher low has been confirmed. This price action continues to be mid-range, care should be taken if buyers reach the range high at .7445. There’s also one more resistance point above at .7465. For now, the AUD looks to have a bullish bias.
GBPUSD – what grabbed our attention today is where the low lined up. 1.2916 lines up with a low made during September 2017. Clutching at straws? maybe, but if you look at the current price channel each time price has hit the channel low we’ve seen a rally from the touch. As highlighted by the orange boxes. Could we see last nights move as an exhaustion bar? It will be interesting to see if a short-term counter rally does develop from this point maintaining the patten.
EURUSD – Price remains in a wedge pattern with a demand zone still in play for buyers. This zone has been tested multiple times but continues to remain valid for now. A lower support low remains in play. Buyers hold a 23 pip rally after testing in JUN lows in last night’s session. While they can continue to hold we lean towards a bullish bias. A new break lower to retest 1.1525 resumes bearish presure.
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