The EURUSD pair recently managed to break a major bearish trend line on the 4-hours chart, which opened the doors for more gains in the short term. The pair traded as high as 1.0980, which acted as a short-term resistance and pushed the pair lower once again.
The pair is currently correcting lower and finding buyers near the same broken trend line. There is also an ascending channel pattern formed on the hourly chart, which may act as a catalyst for the next move.
The 4-hours RSI is above the 50 level, which is a sign that buyers are still in play and may take the pair higher once again.
Today, the Australian TD Securities Inflation, which estimates inflation in the Australian economy was released by The University of Melbourne – Faculty of Economics and Commerce. The market was expecting an increase and near to the last rise of 0.1% in December 2015. However, the outcome was above the forecast, as the Australian H TD Securities Inflation increased by 0.2% in Dec 2015, compared with the preceding month.
Looking at the yearly change, the Australian H TD Securities Inflation rose 2% in December 2015, compared with the same month a year ago. This was again on the higher side if compared with the last rise of 1.8%. The report added that “Contributing to the overall change in December were price rises for fruit and vegetables (+0.8 per cent), holiday travel and accommodation (+2.3 per cent, seasonal), and meat and seafood (+0.8 per cent). These were offset by price falls in fuel (-3.1 per cent), non-alcoholic beverages (-2.7 per cent) and rent (-0.9 per cent).”
The Aussie Dollar was seen trading higher during the Asian session, as the AUDUSD pair recovered to trade near the 0.6900 level.
As the safe haven trades unwind is this move on dollar/yen to be trusted? USDJPY Analysis: Support at 118.15/117.30, resistance at 118.75/119.70
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