By Forex Signs, Inc.
After falling from 83.11 to 81.95 levels, which is approximately 116 pips down, the AUDJPY as of the moment is expected to move in consolidation between the resistance level at 82.44 and support level at 81.94. The MACD (12, 26, 9) of the M30 price chart is still showing signs of a consolidation, as the signal line closes its gap with the MACD line. But the anticipation for a probable selling proposal is still visible with the simple MA (65) along with the price at the 1-hour chart is heading towards the bearish channel. Apart from that, the Parabolic SAR line at the same time frame rises above the price, thus stimulating a prospective bearish momentum in the succeeding events. For the moment, a hold position is seen to be applicable for the current movement of the AUDJPY. And bearish opportunity with the pair heading towards the downtrend for the upcoming trading session is still foreseeable.
Strong Fed for a Stronger Currency
The U.S. dollar may expect a bullish sentiment in the trade today against its European contender as the Federal Reserve remains confident on pace and scale of quantitative easing 2. The QE2 scheme was announced in early November. Despite various doubts on the efficiency of the scheme, the Fed remains firm on their stand that QE2 will work. Further, the balance of economic data has gone beyond expectations since then, with most indicators pointing to an acceleration in the recuperation. This recommends to critics of the Fed plan that it may not have been necessary in the first place. However, at their December 14 meeting, most Fed officials appeared strong-minded to maintain QE2 as it situates, unless there is a much more dramatic pick-up in the US economy. During the meeting, Fed also discussed about the recovery’s pace; it is likely to remain modest, with unemployment and inflation deviating from the committee’s objectives for some time.
The unity displayed by the Fed may likely reflect optimism in the trade of the U.S. dollar. Traders will most probably take this opportunity to buy USD as FOMC Meeting Minutes benefit the currency.
About the Author
Forex Signs, Inc., Founded in 2006 in Wall Street, New York City, FSI relentlessly strives to be the premier Forex brokerage company in the industry by providing exclusive and unmatched trading and investment related services while constantly developing innovative solutions that cater to the vast requirements of both individual and institutional market participants.
