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Forex: EUR/AUD keeps pushing below 1.2250

FXstreet.com (Barcelona) - EUR/AUD is again adding loses though this time from current Aussie strength, last at 1.2228 in the EUR/AUD cross, off fresh 4-month lows at 1.2222 printed in late NY trade. The cross leaves behind the 200 day SMA around the 1.2413 level, falling for third consecutive day following Cyprus bailout deal, and subsequent EU's chairman comments. EUR/AUD is down -1.64% for the week so far, while -3.73% year to date.

“The Euro and the Aussie came under some pressure overnight as the former continues to be buffeted not just by Cyprus but also the Italian political impasse and weak European data while the latter continues to do well on the crosses but just couldn't hold the uptrend under the weight of negativity that is nowhere near acute but just enough to stop the buying for the moment,” said GlobalFX CEO Gregory McKenna, former Head of Currency Strategy at the NAB and Westpac.

Immediate support to the downside comes at mentioned recent fresh 4-month lows 1.2222, followed by Nov 08 lows at 1.2192, and Nov 13 lows at 1.2153. To the upside, closest resistance shows at Nov 20 lows 1.2255, followed by Dec 10 lows 1.2281, and Friday's/Thursday's lows at 1.2340.

Forex Flash: RBA to hold rates steady next – NAB

Next Tuesday the Reserve Bank of Australia will decide on interest rates. According to National Australia Bank the central bank will keep rates unchanged at 3% and an easing bias in the media statement. “Looking ahead for the rest of the year, the market is pricing about 20 basis points of easing for the next 12 months, a 80% probability of one more rate cut. In one sense that’s difficult to argue with, given the RBA’s rhetoric and comments about how its easing since November 2011 have gained some traction in consumer sentiment, housing and maybe retail,” the analysts said.
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Forex Flash: One month target for USD/JPY remains at 92 - Westpac

The USD/JPY moved away recently from multi-year highs and analysts at Westpac see that the decline could continue as they have a one-month target fort the pair at 92. “Yen bears are running out of fresh news to inspire JPY decline, potentially setting up for a sharp reversal. Our one month USD/JPY target remains 92. USD/JPY is last at Asian session lows 94.12.
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