Can you say Yowza!?…
The market’s main focus yesterday was the deterioration in the political front in Italy which caused massive moves in the Italian bond market. The big moves placed a lot of pressure on the Euro, resulting in all major Euro pairs dropping to big figure lows. As a result, the market’s focus will no doubt remain very on Italy and any developments.
On the other side of the pond the Australian building approvals came out rather weak, which could result in further AUD weakness in today’s session. Also, JPY and CHF remains strong given the current risk environment.
Our pair selection for today:
Given the AUD weakness and CHF strength we have chosen the AUDCHF as one of the pairs we will be watching closely today to look for trading opportunities.
AUDCHF – M30
AUDCHF – H4
We view this as a valid trading opportunity as long as the current risk environment stays the same. The current price level (at the time of writing) seems like a possible area to look for shorting opportunities, with recent swing low as possible areas for the market to stall before moving down lower. Keep a close eye on the Italian political scene with regards to this pair as any drastic changes could affect the pair substantially.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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