News & Analysis
Eightcap FX technical insights – AUD update 06/12/17
The Aussie has seen a solid reversal to the USD and JPY today. Stronger USD started things off last night. Today’s weaker than expected GDP figure was all sellers needed to swing into full gear. Australian GDP came in at 0.6% missing the expected 0.7% and falling below the last 0.8% figure.
AUDUSD – is trading 26 pips lower after starting the session stronger. .7624 resistance reconfirmed overnight, this level has held buyers back since October. We can see a bearish continuation pattern, sellers still need to confirm it with a breakout. If we see a breakout buyers will most likely come in from .7532 support low. Hidden divergence has formed with the continuation pattern.
AUDJPY – as with the A/U hidden divergence has set up with supporting a continuation. Overnight buyers made a failed high that failed to close above 85.88 area, this area has offered resistance since AUG 10th. With further selling, we could see a test of 84.37 swing low.
EURAUD – looks to be setting up a continuation from 1.5480 support. Buyers have made two failed lows from this level. This support point also lines up with the 20SMA midpoint on the Bollinger bands. Hidden divergence has also set up supporting this possible continuation pattern.
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