EURAUD On The UpThe recent breakout higher in EURAUD has seen the market blowing through several key levels. The rally has recently stalled into a retest of the broken bull channel and the 1.6163 level resistance. However, with around 75% of the retail market currently short, there is plenty of room for the current rally to continue. Additionally, the risks around the COVID backdrop are skewed towards greater downside for the higher-beta AUD meaning that any deterioration in Omicron news flow is likely to send the pair higher. Bulls can look for a breakout above 1.6163 targeting a run back up to the 1.6419 highs.Keep An Eye OnThe big focus will be the RBA meeting later tonight. Following a slew of better-than-expected data recently, there are upside risks going into the meeting. However, given the fresh uncertainty over Omicron and the high likelihood of fresh Aussie lockdowns on the horizon, it seems reasonable to expect the RBA to remain on hold at this point. Consequently, the focus will be on the guidance . If the RBA sounds overly alarmed by Omicron, this will weigh on AUD near term.
from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-euraud-continuation-trade"
via IFTTT
Subscribe to:
Post Comments (Atom)
-
The new strain of covid found in South Africa could disrupt plans by governments and central banks to rebuild economies. Financial markets a...
-
Fidelity “FIS” is a global financial services technology company and a leader in providing technology solutions to merchants, banks and cap...
-
Asian Equities Sink on Covid FearsIt’s been a mixed start to the week for global equities benchmarks with US and European asset markets rema...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.