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Aussie amid a backdrop of U.S. political concern

Market Analysis

GBPAUD, H1

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.

 

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Andria Pichidi

Market Analyst

HotForex

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