Alpari - Analytics


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Daily analytical report (02/04/19)

  • Still no Brexit deal in the UK Parliament. As mentioned in our previous analysis, the pound doesn’t care too much about this. On Friday, we had movements in both directions, on Monday, we had a rise, and today, we could see a drop. Clearly, another rejection is not going to play a big role here. Let’s look for trading occasions elsewhere. Overnight and early this morning, we had a rate decision and the statement from the RBA. Rates remained unchanged but the statement was dovish. This was a bearish trigger for the currencies from the antipodes: AUD and NZD.
  • The first instrument in our analysis is AUDUSD. The pair is aiming to test the crucial horizontal support at 0.707. Over the past two weeks, the area has proven to be an important stronghold for buyers. If the pair manages to break this support, we will get a strong sell signal. As long as we are above it, buyers can still feel relatively safe.
  • There’s a clear correlation between the AUD and NZD, so the Kiwi is also going down. The best setup ca be spotted on NZDCAD, where we have a bearish engulfing on the weekly chart along with the false breakout above the downwards trend line. The sell signal is pretty strong here, at least from a technical point of view.
  • The last instrument is the EURUSD, where we can clearly see the power of the false breakout pattern. We’ve recently had two of them, both of which brought us nice directional movements. Today, EURUSD is making new mid-term lows. It looks like sellers are going to win this one and in the next few days, the pair should continue this decline.

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