All Eyes on RBA Governor’s Speech

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All Eyes on RBA Governor’s Speech
All Eyes on RBA Governor’s Speech

All Eyes on RBA Governor’s Speech

As stated in our previous report, the Australian dollar would continue its bullish move and so it did where it moved above the resistance level of 0.9117 and tested its mild resistance area of 0.9151 on Tuesday in the US session.

However, all eyes are on the upcoming speech of RBA Governor that is set to be delivered just before the start of the London trading session where dovish comments might bring the pair back down to 0.9100 and breaking of which could test 0.9084 and 0.9050 that would complete its 38.2% Fibonacci retracement for its current bullish move.

Euro Recovers its Loss

The Euro started falling down from the resistance level of 1.3880 where pending sell orders were placed, as mentioned in the previous report. Therefore, the Eur/Usd plunged by nearly 120 points on Tuesday alone as the ECB president Mario Draghi pointed out that ECB can take necessary measures as per the requirements if needed. The investors took this statement as a dovish one; however, the pair immediately bounced back from the support level of 1.3747 after which it closed at 1.3811 on Tuesday.

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The Eur/Usd would face resistance levels at 1.3822 and 1.3853, below which sellers can feel free to short the pair but traders are advised to have a close look on the German consumer climate and the US Core durable goods orders data which can bring volatility in the market instantly. If the pair manages to move above 1.3853 area today and sustains above this level, then long positions can be taken with tight stop losses.

Gold Bouncing from Psychological Support

The metal lost its value sharply on Monday where it dropped from 1342 level to 1317, where it continued its bearish move yesterday as well where it went down to test its psychological support level where buy pending orders allowed the metal to bounce from 1305 support level.

We can expect gold to stay above this level till the start of the US session today, where core durable goods data and tomorrow’s unemployment claims data could shape the direction for the metal.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com