Fundamental Analysis

• BoJ Deputy Governor’s Dovish Comments Push USDJPY to Late 147 Yen Range
• The BoJ Deputy Governor stated that there will be no rate hikes in an unstable market condition
• Nikkei 225 Pressured by Selling but Continues Two-Day Rise

EURUSD technical analysis

Analyzing the daily chart of EURUSD. After surpassing the recent high, EURUSD retraced but showed strong buying pressure with the appearance of a long lower shadow candlestick. Drawing Fibonacci expansion, 61.8% corresponds to 1.095 USD and 100% to 1.105 USD.

1.10 USD is a round number, so it may take time to break above. MACD suggests an upward trend. On a larger perspective, it is forming a triangle, and whether it can break above this triangle is also a key point.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of EURUSD. It is supported by the 90 moving average and rising. Confirming the firmness around 1.09 USD, it appears to have a slightly bullish outlook. However, if it breaks below the 90 moving average, it could fall to around 1.0865 USD, which corresponds to 61.8% of the recent uptrend.

Today’s day trading policy is to buy the dip. If there is a deep correction to around 1.0870 USD, consider buying. Stop if it falls below 1.085 USD. Take profit at 1.098 USD.

Support/Resistance lines

Consider the following support and resistance lines going forward:

Recent high: 1.1008 USD

Market Sentiment

EURUSD Sell: 71% Buy: 29%

Featured Currency Pair of the Week (AUDNZD)

AUDNZD has been declining for two consecutive days. It has fallen below 1.09 USD and is hovering around 1.087 USD. It is believed to be heading towards the recent low of 1.085 USD. Until July, AUD was easier to buy, but now the market seems to favor NZD. As the 200-day moving average is around 1.085 USD, buying the dip might occur below 1.085 USD.

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.