The Dow is rallying after
Draghi told the market what it was braced to hear. That’s the risk barometer
aspect of this pair. The Australian dollar is rallying on the solid Employment
Change and Unemployment Rate numbers. Finally the Japanese yen is losing ground
rapidly against the majors as the risk appetite on Wall Street is triggering
yen selling.
The euro had been steadily gaining on
the anticipation of details of a bond buying program and today was the day that
profits were initially taken on that large move. The market – despite the move
higher in U.S. equities – is hesitant and that makes this move on the AUD/JPY
interesting.
Past performance is not indicative of
future results
The
daily AUD/JPY has corrected sharply higher in the midst of what is a “fresh” downtrend
on the daily. This will be the first significant test of AUD/JPY bears and
pessimistic equities traders.
The Dow Jones (futures) are up sharply
but have yet to break higher through previous levels of resistance telling that
despite the near-term optimism, there is are lingering doubts and fears.
Without momentum north of 13,000 the move is likely to have a sharp retracement
and this could set up the follow-through needed for the AUD/JPY to move lower
from the 38.2% Fibonacci Retracment and the 34 period EMA low. Oh but there is
a little thing called the Non-Farm Payroll tomorrow that could have a
significant impact on whether enough what we got from Draghi is enough to
establish a base from which U.S. data could add the next wave of equities
buying. One drag on all this euro-optimism is the skeptical eye of traders that
is focusing on disappointing growth prospects in Europe.
As an
active forex trader and Chief Currency Analyst for InterbankFX.com I do write
for a number of sites all over the web and I am happy to say that I will be
posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
The Dow is rallying after Draghi told the market what it was braced to hear. That’s the risk barometer aspect of this pair. The Australian dollar is rallying on the solid Employment Change and Unemployment Rate numbers. Finally the Japanese yen is losing ground rapidly against the majors as the risk appetite on Wall Street is triggering yen selling.
The euro had been steadily gaining on the anticipation of details of a bond buying program and today was the day that profits were initially taken on that large move. The market – despite the move higher in U.S. equities – is hesitant and that makes this move on the AUD/JPY interesting.
Past performance is not indicative of future results
The daily AUD/JPY has corrected sharply higher in the midst of what is a “fresh” downtrend on the daily. This will be the first significant test of AUD/JPY bears and pessimistic equities traders.
The Dow Jones (futures) are up sharply but have yet to break higher through previous levels of resistance telling that despite the near-term optimism, there is are lingering doubts and fears. Without momentum north of 13,000 the move is likely to have a sharp retracement and this could set up the follow-through needed for the AUD/JPY to move lower from the 38.2% Fibonacci Retracment and the 34 period EMA low. Oh but there is a little thing called the Non-Farm Payroll tomorrow that could have a significant impact on whether enough what we got from Draghi is enough to establish a base from which U.S. data could add the next wave of equities buying. One drag on all this euro-optimism is the skeptical eye of traders that is focusing on disappointing growth prospects in Europe.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner