Are risk-off flows about to return soon?
I’ve got this break-and-retest AUD/JPY setup on my radar in case that happens!
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Asian shares retreat from rally ahead of Jackson Hole Symposium
- South Korean central bank hiked interest rates from record lows
- Oil and gold prices hit a ceiling as traders await Jackson Hole
- Australian private capex up 4.4% vs. expected 2.7% gain
- German GfK consumer climate index at -1.2 vs. -0.5 forecast
- ECB minutes: New forward guidance does not necessarily mean low interest rates for longer
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. preliminary GDP at 12:30 pm GMT
- U.S. initial jobless claims at 12:30 pm GMT
- Jackson Hole Symposium starts today
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: AUD/JPY
It looks like the risk rallies are getting exhausted, fellas!
Could this mean a continuation of the selloff for AUD/JPY?The pair is already testing the area of interest around the 61.8% Fib, 80.00 major psychological handle, and a former support zone.
If this holds as resistance, AUD/JPY could slide back to the swing low at 77.87 or lower!
Technical indicators hint that sellers are in control, with the 100 SMA below the 200 SMA and Stochastic heading south.
However, the gap between the moving averages is narrowing to suggest weakening bullish momentum and a possible bullish crossover.
Still, it seems that investor jitters leading up to the Jackson Hole Symposium might be enough to keep the Aussie from climbing.
After all, many expect Fed head Powell to drop some clues on their taper plans, which w0uld fuel speculations of higher borrowing costs down the line.
Besides, Australia has its retail sales report coming up before the end of the week, and analysts are counting on another sharp drop in spending due to the lockdowns.