I’m beginning the week off with this easy break-and-retest setup on AUD/JPY.
Assume threat urge for food would prop this pair up once more?
Earlier than transferring on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Examine them out earlier than you place your first trades at present!
And now for the headlines that rocked the markets within the final trading sessions:
Recent Market Headlines & Financial Information:
Australian PM calls on China to carry commerce sanctions
BOJ to carry presser to introduce new coverage board members
Asian shares wobble on recession fears forward of Fed resolution this week
Crude oil slides decrease as merchants worth in larger borrowing prices
ECB head Lagarde: Will elevate charges for so long as it takes
ECB official Kazaks: Sept price hike must be “fairly vital”
German Ifo enterprise local weather index down from 92.3 to 88.6 vs. 90.0 forecast
U.Okay. CBI industrial order expectations at 10:00 am GMT
BOJ financial coverage assembly minutes at 11:50 pm GMT
Use our new Currency Heat Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: AUD/JPY
I’m benefiting from the calm earlier than the FOMC storm this week by having a look at this neat technical setup on AUD/JPY.
The pair is already hanging out on the space of curiosity across the 38.2% to 50% Fib levels, which line up with a former resistance zone.
Will it maintain as help this time?
Stochastic is already on the transfer as much as verify a return in shopping for strain, following a bullish divergence enjoying out.
If Aussie bulls can hold charging, they might take the pair again as much as the swing excessive simply previous the 95.50 minor psychological mark.
A bigger pullback, alternatively, would possibly attain the road within the sand on the 61.8% Fib close to the 93.50 mark. Breaking beneath this would possibly sign that extra losses are within the playing cards.
Danger-on flows is perhaps sufficient to prop up the higher-yielding Aussie early this week, however I’m a bit fearful that expectations of upper borrowing prices from the Fed would possibly dampen any positive aspects.
In any case, higher hold shut tabs on the headlines when buying and selling this one!