On Friday (May 6th) I identified a low risk, high probability trade based on both the fundamental news and a coincidence of technical indicators. The RBA had cut interest rates on Tuesday May 3rd and then had also cut Inflation expectations for 2016 on Thursday May 5th. The initial Target 1 (0.7330) saw a confluence of the Daily and Weekly Fibonacci levels, together with a key psychological area that was likely to be tested.
Additionally, the uncertainty surrounding the Australian federal election (the 54 day campaign started today for the July 2nd election) is likely to hang over the AUD.
The USD strengthened in the Asian session and has gained ground in the European session today as USDJPY trades north of 108.00 and EURUSD falls to nine-day lows at 1.1380.
Further down we have 200 DMA, support and Target 2 at 0.7260. The Monthly chart turned down during April and shows support at 0.7050 and then 0.7000.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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