OctaFX | OctaFX Forex Broker
Open trading account

ForexL AUD/JPY still forming “pennant” pattern on daily chart

FXstreet.com (Barcelona) - The AUD/JPY closed the session up 48 pips at 101.20. The pair again found buyers just below the 101.50 for a third day in a row. The pair is currently edging slightly lower in Asia trade at 100.90, with not much reaction after both China PMI (50.6 Actual vs. 50.8 Estimate) and Australia HIA New Home Sales (+4.2% actual vs. -5.3% prior) were released earlier in the session.

From a technical perspective, the “pennant” continuation pattern that continues to form on daily chart is important to keep an eye on. Although it doesn’t span over a huge period of time (started April 15th), the pattern does span a decent prince range (about 400 pips) and when resolved could help lead to a very big move. Being it is a continuation pattern; the pennant should resolve itself in direction of the underlying trend (or in this case, higher). Keep an eye on the upper boundary (102.50) and the lower boundary (99.90).

Forex: EUR/USD quiet during Asia session, resistance at 1.3200 remains in focus

The EUR/USD finished the day sharply higher, up 73 pips at 1.3166. However, the pair was once again unable to take out major resistance at 1.3200, a level which also capped advances back in mid April. The next US Session will be extremely busy with economic data, starting with ISM Manufacturing PMI at 14:00GMT. Later in the day, we will see the Federal Reserve Monetary Policy Statement at 18:00 GMT. Currently, the EUR/USD is slightly lower during Asia trade, down 6 pips at 1.3162.
Read more Previous

Forex Flash: FED to maintain the pace of assets purchases - BNZ

“Admittedly, the approach of FOMC meeting and sliding US bond yields are adding to the downward pressure on the greenback,” says Mike Jones, Currency Strategist at BNZ. “10-year yields touched a 4-month low o 1.64% overnight as falling inflation (the core PCE fell to 1.1% on Monday) and deteriorating economic data has raised speculation the Fed could be a little more dovish this time around,” Mike notes, adding: “We doubt the Statement (released tomorrow morning at 6am NZT) will discuss addition asset purchases.”
Read more Next
Start livechat