The Australian dollar dropped to its lowest point in four years. One of the key issues to be aware of with the AUS/USD pairing is that there is a high chance that we will see a downtrend continuation in the short term.
Sydney, New South Wales (PRWEB) February 03, 2014
On January 17, 2014 the respected voice in Forex trading, Invast, divulged the global implications of December’s weak employment numbers which have recently been announced in Australia via their Weekly Market Wrap update. Invast’s first weekly market wrap for 2014 provides a revealing insight into how this news has in turn weakened the Australian dollar across several major pairings.
As Invast’s highly experienced Senior Technical Strategist, Mr Vito Henjoto, exclaims in the Weekly Market Wrap video, “The topic of the week is definitely the Australian dollar and the record slump that has been experienced following the lower than expected job numbers which came out at negative 22,600, while the unemployment rate remains steady at 5.8 per cent.”
He then continues to say that “the Australian dollar dropped to its lowest point in four years. One of the key issues to be aware of with the AUS/USD pairing is that there is a high chance that we will see a downtrend continuation in the short term. We’re looking for a potential movement towards 0.8750 and 0.8655.”
The ripple effect of the job losses extends to the Japanese Yen also, with a potential push lower towards 90.25 and 89.25 Yen. Invast believes this to be based on one condition – that the support at 91.50 is unable to hold the AUD/JPN pair.
“Turning our attention to the Euro dollar and it has certainly been a tight range for the pair. We need to look at the key support region for the pair and that’s coming in at 1.3565 to 1.3600, “ explains Mr Henjoto.
“There is quite an interesting outlook around these levels – 1.3585 is where the support trendline is located going back to September as well as Ichimoku cloud support.”
As the Invast video blog goes on, it's clear Mr Henjoto does believe that there is an upside to this news, saying to look out for an immediate resistance with the EUR/USD at 1.3700, followed by a key stronger resistance at 1.3800.
In their very first weekly update for 2014, globally renowned trading company Invast detailed how the announcement of 22,600 Australian job losses has caused a four year low for the Australian dollar. The update was released on January 17 via their blog and explains the impact of the major pairings with the American dollar, Japanese Yen and European dollar. For more information or to view other current updates, visit http://www.invast.com.au.
Since 1960, Invast has become one of the largest and most successful global market brokerage firms in Japan, and now offers state-of-the-art trading technology and unparalleled service in Australia, catering to all levels of traders.
Invast’s mission in Australia is to create more informed, confident and in-control traders. They do this by providing access to a full suite of educational material provided by their dedicated research and analysis team, award-winning support and innovative trading technologies, including the Invast MT4 and cTrader platforms.