News & Analysis
Eightcap Forex technical insights; is the AUD starting to find buyer traction?
This week has seen a solid reversal for the AUDUSD after adding 92 pips to end last week, 10-year T-note yield has sent the USD surging and the Aussie plummeting. The AUD held up a lot better to a struggling Yen, but we saw a 74 pip fall over the last two days.
This morning Australian wage growth increased to .05% in March. This increase failed to meet the 0.06% the market was looking for but remained stable from last months figure. Under the current environment, it’s not that much of a surprise not see wage growth. This data did send both the AUDUSD and AUDJPY lower, both pairs making new weekly lows. Looking past those low’s buyers have shrugged off the data miss and have pared most all of today’s loses. Which is also showing developing patterns that could prove bullish with further confirmation.
Lets take a look at the daily charts;
AUDUSD – overall remains in a downtrend but has broken one downtrend last week. This weeks sell-off stopped short of hitting the last low, setting up a higher low. This morning seller made a new weekly low but failed to hold the move. Buyers have so far held the higher low. With a positive close today this could be the start of a continuation of the current counter-rally.
AUDJPY – broke its downtrend a lot earlier, it also set-up a higher low last week. Overall we see a wedge pattern still completing. Price currently broke its short-term downtrend and remains between a low and a resistance zone seen at the red box. If buyers can continue to close above the orange line we could see a new move to test the wedge roof.
Good trading from Eightcap
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