EUR/USD Rebound Unravels as ECB Buys Time; November-Low on a Radar

Talking Points:

AUD/USD Extends Bullish Sequence Following Upbeat Australia Employment Report.

EUR/USD Rebound Unravels as ECB Buys Time; November-Low on a Radar.

DailyFX TableAUD/USD

AUD/USD climbs to a uninformed monthly-high (0.7675) following a 61.6K enlargement in Australia Employment, and a span might theatre a incomparable liberation forward of a weekend as it extends a array of aloft highs lows from progressing this week.

Keep in mind, a broader opinion for AUD/USD stays slanted to a downside as a span continues to lane a downward trending channel from September, and a sell rate might continue to vaunt a bearish function in 2018 as a Reserve Bank of Australia (RBA) stays in no rush to lift a money rate off of a record-low. Indeed, a ongoing alleviation in a labor marketplace might inspire a RBA to adopt a hawkish tinge as Governor Philip Lowe warns that ‘it is some-more expected that a subsequent pierce in seductiveness rates will be up, rather than down, yet a executive bank might merely try to buy some-more time during a subsequent assembly on Feb 6 as ‘household incomes are flourishing solemnly and debt levels are high.

Nevertheless, a near-term opinion for AUD/USD has perked adult as a span finally rebounds off of channel support, and a topside targets sojourn on a radar going into a week forward generally as a Relative Strength Index (RSI) snaps a bearish arrangement carried over from a summer months. Want to learn some-more about renouned trade indicators and collection such as a RSI? Download and examination a FREE DailyFX Advanced trade guides!

AUD/USD Daily Chart

AUD/USD Daily Chart

  • AUD/USD carves a uninformed bullish method following a unsuccessful try to break/close subsequent a 0.7460 (23.6% retracement) to 0.7490 (50% retracement) region, with a bullish RSI vigilance lifting a risk for a incomparable liberation in a sell rate.
  • A tighten above a 0.7650 (38.2% retracement) jump opening adult a subsequent topside jump around 0.7720 (23.6% retracement) to 0.7770 (61.8% expansion), that mostly lines adult with a November-high (0.7730).


The near-term miscarry in EUR/USD unravels as a European Central Bank (ECB) endorses a wait-and-see proceed for financial policy, and a span might continue to connect over a residue of a year as generally as a Federal Open Market Committee (FOMC) appears to be on march to broach another 3 rate-hikes in 2018.

Even yet a ECB records that incoming information ‘indicates a clever gait of mercantile enlargement and a poignant improvement in a enlargement outlook,’ it seems as yet a ECB will keep a doorway open to serve enhance a change piece as an plenty grade of financial impulse ‘remains required for underlying acceleration pressures to continue to build adult and support title acceleration developments over a middle term.’ The miss of new sum surrounding a ECB’s exit plan is expected to keep EUR/USD underneath vigour as President Mario Draghi and Co. merely try to buy some-more time, and a span might continue to give behind a miscarry from a November-low (1.1554) as it stages a unsuccessful try to tests a December-high (1.1940). Interested in carrying a broader contention on stream marketplace themes? Sign adult and join DailyFX Currency Analyst David Song LIVE for an event to plead intensity trade setups!

EUR/USD Daily Chart

EUR/USD Daily Chart

  • Near-term opinion for EUR/USD stays capped by a 1.1960 (38.2% retracement) region, with a span during risk for serve waste as it struggles to reason above a former-resistance section around 1.1810 (61.8% retracement) to 1.1860 (161.8% expansion).
  • In light of a marketplace greeting to a ECB, a new array of aloft highs low might continue to unravel, with mangle of a weekly-low (1.1718) lifting a risk for a pierce behind towards 1.1670 (50% retracement), with a subsequent downside segment of seductiveness entrance in around 1.1580 (100% expansion), that sits above a November-low (1.1554).

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— Written by David Song, Currency Analyst

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