The yen and safe have assets remained in demand amid a backdrop of U.S. political concerns, which boils down to reduced odds for the implementation of Trump’s pro-growth agenda, with the latest terror attack on a Western nation by Islamist extremists, this time in Barcelona, also in the mix. USDJPY carved out a four-session low at 109.25, and AUDUSD has ebbed back under 0.7900, correcting after logging a two-week high at 0.7962 yesterday. The dollar has come under some broader pressure, which has seen Yen and Australian Dollar strengthen a bit against US Dollar.
Hence on the strength of Aussie, a SHORT Position was taken in the hourly chart, with entry at the 20-period MA, which is at 1.6300, after noticing an intra-day resitance at 1.6350. Therefore the pair manage to break the 20-period MA and the 50-period EMA in the hourly chart after seen a consolidation within 1.6310-1.6350 area the last 11 sessions. Targets were set at 23.6 Fibonacci level which is at 1.6270, and at 1.6245. The support level is at 1.6380. The RSI is at 43, having a sharp slope downwards, while GBPAUD just broke the latest down Fractal.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.