Good morning Traders!
RBA Governor Philip Lowe has noted that a pause in the tightening cycle may be needed, after the bank increased it’s official rates to the highest level in eleven years on Tuesday. The comments together with fears of Australia’s biggest trading partner potential slow down, saw a selloff in the Aussie dollar.
It’s not very often that we see a trend agreement on all the higher timeframes as well as the mid timeframes. The big moves against the Aussie yesterday, also confirmed a new Higher High for the Monthly, Weekly and the Daily charts of EURAUD.
Looking at the Daily chart, and we can see that the Daily candle has also closed above the previous Weekly swing Higher High which is around the area of 1.5980
Drawing the Fibonacci retracement of the latest move, has the 61.8% retracement area clustering with the previous daily swing high and the level of around 1.58. And if and when the market will pullback into this level, price action will also be back in the area of it’s Moving Averages.
As always, I’ll be looking at the lower timeframes for signs that the pullback is over, and the buyers are ready to take control once again.