In this video, the Trader Guy looks at the currency pairs USD/JPY and AUD/USD for the October 6th session.
USD/JPY — We initially tried to fall and then turned around and formed a rather positive candle during the day on Wednesday. I think that the market is going to try to reach towards 105.00. It makes sense that we have comments coming out of the Federal Reserve suggesting that perhaps the interest rate environment in the United States is about to change rapidly, because it needs to be higher. With that, it makes sense that the Bank of Japan is working against the value of the yen and keeping things very loose. So, this pair continues to rise. I think that the short-term pullbacks offer buying opportunities. Eventually we will go higher than the 105.00 level.
AUD/USD — We went back and forth and really did not do much. We continue to find ourselves consolidating. But what I find particularly interesting about this pair is that the Gold markets fell apart, but this market just kind of standing still. That shows that there is quite a bit of bullish pressure underneath. I think that the 0.7500 level is the floor. So, if we drop from here, a supportive candle below is an excellent buying opportunity.
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Post tags: AUD/USD, technical analysis, USD/JPY
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