Hello everyone :)
The pick for this week will be AUD/JPY. As we know Australia developed the best system in the world to fight against novel coronavirus and as the result, AUD is the best-performed currency in the market, besides NZD. They have 7 days on average of infected about 6 people a day and investors saw AUD and NZD as a safe haven currency at the moment. This can change. The Japanese government made the first big move to win a battle against COVID-19. EU approves coronavirus vaccine exports to Japan for the first time(www.japantimes.co.jp...ts-japan-first-time/). That can have a huge impact on the JPY because JPY is known as a safe-haven currency, and it can give a reversal momentum against well-performed AUD. But if you are looking backward a little bit it will give a huge impact on EURO because when they made an arrangement, as we know the market is moving up by the law of supply and the demand and when the Japanese government will start receiving the vaccine they need to exchange JPY to EUR, it will give a huge boost to EUR.
From a fundamental point of view, we have a strong resistance line that will give information about the future of the pair AUD/JPY. For buying option, I prefer to wait for a testing resistance zone in the way of making Higher-High and Higher-Low, because at the moment we have strong bullish momentum. From the selling point of view, we have a price above the resistance line and if the price starting to move down, we can consider that we had a false breakout. Of course, we have an ascending channel and price touching it at the moment so from the selling point of view is important to watch for selling setup. Where to start selling?
Well my opinion if the price fails to go upwards, waiting to make Lower-Low and Lower-High below the resistance line(at the moment support line). Stohastic oscilator is showing up a overbought zone.
The pick for this week will be AUD/JPY. As we know Australia developed the best system in the world to fight against novel coronavirus and as the result, AUD is the best-performed currency in the market, besides NZD. They have 7 days on average of infected about 6 people a day and investors saw AUD and NZD as a safe haven currency at the moment. This can change. The Japanese government made the first big move to win a battle against COVID-19. EU approves coronavirus vaccine exports to Japan for the first time(www.japantimes.co.jp...ts-japan-first-time/). That can have a huge impact on the JPY because JPY is known as a safe-haven currency, and it can give a reversal momentum against well-performed AUD. But if you are looking backward a little bit it will give a huge impact on EURO because when they made an arrangement, as we know the market is moving up by the law of supply and the demand and when the Japanese government will start receiving the vaccine they need to exchange JPY to EUR, it will give a huge boost to EUR.
From a fundamental point of view, we have a strong resistance line that will give information about the future of the pair AUD/JPY. For buying option, I prefer to wait for a testing resistance zone in the way of making Higher-High and Higher-Low, because at the moment we have strong bullish momentum. From the selling point of view, we have a price above the resistance line and if the price starting to move down, we can consider that we had a false breakout. Of course, we have an ascending channel and price touching it at the moment so from the selling point of view is important to watch for selling setup. Where to start selling?
Well my opinion if the price fails to go upwards, waiting to make Lower-Low and Lower-High below the resistance line(at the moment support line). Stohastic oscilator is showing up a overbought zone.