AUDUSD chart since the beginning of this month seemed frighteningly jagged, full of sharp reversals from both direction of the market in a range of almost 300 pips. However, there is no trend that does not end. The current AUDUSD erratic movements too, at some point will meet its breakout.
Following UK speedy recovery this year, many expects The Bank of England to hike rates sooner than US The Fed. However, yesterday's UK inflation report effectively diminished such expectations, as UK inflation rate dropped to its lowest in five years.
After skyrocketed in the last three months, Greenback lose steams. Since market opening this week, US Dollar has softened in major currency pairs. Japanese Yen has strengthened as much as 1.7% against the US Dollar, and so did the Euro and Cable.
US Dollar skyrocketed after NFP showed up better than expected. However, this week, there seems to be a careful approach among traders. Volatility has only lessened slightly, but people tend to unwind greenbacks that has already overbought almost everywhere.
Euro is also trying to rebound. The price is approaching the resistance area at 1.2698. The bullish rally may continue if the resistance breaks, with target at 1.2698-1.2745. As alternative, watch also the support area at 1.2622-1.2576.
UK GDP has grown, emphasizing the UK fundamental economic strength that has made it one of the best-performed economy this year. Along with it, GBPUSD moved up.
RBNZ chief stated that they are considering intervention to lower NZD exchange rate. In the same day, the RBA chief also stated that the current AUD is not good for Australia.
The current decline experienced by Eurozone economy is quite a mystery. Some say that it started from the debt crisis a while back that is still a nightmare to this day, and some say that Euro area has just entered the lower stage of economic cycle. But is that all there is to it?
Two topmost agenda worldwide this week are the Fed FOMC Meeting and referendum on Scottish independence. Editorial today will detail the role of the two events in the forex market fundamental, particularly for the GBPUSD.
Gold price analysis presented by foreximf.com. Gold price is still bearish after breaking previous low at 1225.48. Watch the level of 1215.85 as intraday key support, which if it breaks then might be followed by deeper bearish move to 1206.80-1210.30.
