Markets buying on optimism for US-China relations
AUDJPY retrace more than 50% of December’s losses, after falling dramatically to its low area first established in 2009, at 70.60, last Thursday. The pair is for a 3rd coscecutive day above 50% Fib. level and the 77.00 level.
Momentum indicators are still negatively configurated, showing that the overall weakness of Aussie does not seem to have faded yet. However, the short-term technical indicators along with the move above the month midpoint, imply buying pressure and the possible retest of 78.80 barrier.
This barrier is the confluence of 61.8% Fib. retrecament level, 20-day SMA but also 2-year’s Support, which could provide now strong Resistance for the asset. Support for the day holds at 77.08-77.20 area.
Andria Pichidi
Market Analyst
HotForex
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.
Momentum indicators are still negatively configurated, showing that the overall weakness of Aussie does not seem to have faded yet. However, the short-term technical indicators along with the move above the month midpoint, imply buying pressure and the possible retest of 78.80 barrier.
This barrier is the confluence of 61.8% Fib. retrecament level, 20-day SMA but also 2-year’s Support, which could provide now strong Resistance for the asset. Support for the day holds at 77.08-77.20 area.
Andria Pichidi
Market Analyst
HotForex
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.
