By: Colin Jessup
While the news from the RBA wasn't great in the short term, it does look positive for the longer term and growth of the economy is looking good for the coming year. This has allowed the pacific peso to gain some ground, as high as 1.02418 so far with a solid support level directly below at 1.0170. Recently, each time price has approached the support level at 1.0170, no matter how much pressure the bears lay on, it has failed to hold below this level. If the bulls resume control we will see resistance at 1.0250 and 1.0325
Should price manage to drop below support we will see support again at 1.0109 and 0.9995 below that. Also of interest is an ascending trend-line intersecting at the same level as the weekly moving average, below at 1.0100 either of which can act as strong support on their own, but combined create even stronger support.
I think this pair could possibly turn bullish in the Euro & USA sessions, but could fall a little lower before doing so.
Happy Trading!
