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Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar
RBA Meeting Minutes at 12:30 am GMT (Dec. 15)
RBA Kearns speech at 12:40 am GMT (Dec. 15)
China Industrial Production, Retail Sales, Unemployment rate at 2:00 am GMT (Dec. 15)
What to Watch: AUD/JPY
On the one hour chart above of AUD/JPY, we can see that the bulls have been in steady control of the currency pair, especially after a strong push higher from consolidation around 77.50 to nearly retest the 79.00 handle last Friday.
These events aren’t often market-moving, but with the world speculation on recovery as vaccines are rolled out across the world, any positive news could bring in traders to continue the current trend higher. Look out for an upside break in that scenario, with a potential move to the next potential resistance area around the 79.00 major psychological handle (within one daily ATR from current market prices)
For those who are a little more conservative and hope to hop in at a better price, if we see a pullback then the pattern of rising ‘lows’ and a broken resistance area, should be watched for a potential retest-support pattern before considering a swing long position.
For those who are bearish, there is an argument for a potential pullback ahead, especially as the pair retests a major swing high that leads to a big reversal back in August around the 78.50 handle.
The case for this reversal grows if we see negative global risk sentiment headlines like a failure for the U.S. to get a new stimulus package passed, and/or Brexit negotiation developments leading to a no-deal Brexit outcome.