FOREX CHART ANALYSIS APR 7 - EYES ON AUD
In addition to US stocks, the fluctuation at the beginning of the week was relatively low. Today's focus was AUD with RBA's interest rate decision. It is facing an important threshold. Look out and choose your trading strategies carefully!
- The optimistic signal about the epidemic situation made the US stock indexes increase sharply, both above 7%.
- Kirill Dmitriev, head of Russia's wealth fund, told CNBC earlier Monday that Saudi Arabia and Russia are "very, very close" to an agreement to cut oil production. While the Kremlin spokesman, Dmitry Peskov also said, "Moscow is ready to cooperate and interested in liaising with countries to stabilize energy markets and delayed OPEC+ negotiations. due to technical problems. Preparations are underway.
- Dollar borrowing costs on the foreign exchange market continued to decline at the start of the week, with the USD exchange rate with GBP and EUR having reached the lowest level in more than a decade.
- The EU approved the UK's £ 50 billion umbrella program to support companies affected by covid-19.
- British Prime Minister hospitalized for Covid-19 after many days of home isolation.
- The Japanese Prime Minister called for a state of emergency in Tokyo and Osaka.
USDJPY exchange rate has not changed much. We still notice the new signs appear - the double bottom pattern. Today, it is likely that the price will retreat to MA20 area before going up. The target is still the zone 110.
The price continues to accumulate around the bottom of 1.08. Currently, on H4 chart, there is a pennant pattern and the price has not surpassed the MA20, so the probability of further decline is quite high. If the 1.078 zone is broken, the price could easily reach the bottom of 3 years - the 1.065 zone.
GBPUSD exchange rate is congested around the zone of 1,226. With recent price action, we are still inclined to the possibility of a downside for the currency pair. However, sell orders should only be considered when the support zone of 1.22 is broken. In this case, the target will be zone 1.20.
Although not too volatile, USDCAD has created a remarkable signal. It has broken through the daily MA20 for the first time since February 25. The downtrend channel is holding while the short-term support line has been broken. These signs increase the likelihood that the pair will continue to fall. However, we remain cautious with the possibility of a major trend turning back. The stop loss will be placed above the 1.243 zone.
AUDUSD also broke MA20 daily. It is likely that the price will continue going up today. Note the area of 0.62. If there is a bearish signal, consider short-term. On the contrary, if it is broken, it will establish a rising structure with gradually higher peaks. In this situation, the price may go up to the 0.644 zone.