FX News - August 22: EUR/USD Goes Through Volatility, AUD Drops

FX Strategy Articles > FX Trading Tips

As expected, the EUR/USD pair experienced a lot of volatility after the release of the FOMC minutes. The expectation that tapering will happen sooner than later pulled the pair to session lows yesterday due to the greenback's strength. However, the pair made a quick recovery before slipping once again.

More events today will likely affect the pair as traders will have their eyes on the Jackson Hole Symposium in the US, as well as a number of reports coming from Europe, including Marikit Manufacturing PMI from Germany and the EU (happening at 7:28am and 7:58am GMT, respectively).

The EUR/USD continued its downtrend until the opening of today's Asian session and is currently trading at 1.3339. Initial resistance for the pair is seen at 1.3392, followed by 1.3425. Meanwhile, initial support is at 1.3299, followed by 1.3266.

As for the AUD/USD, the pair slipped below 0.9000 at the opening of today's session despite a better than expected HSBC Manufacturing PMI from China. It went up from 47.7 to 50.1, beating expectations of just 48.3.

The pair dropped to a low of 0.8931 today. However, it is currently making a recovery and is trading at 0.8980. Initial resistance for the pair is seen at 0.9022, followed by 0.9045. Meanwhile, initial support is seen at 0.8911, followed by 0.8889.

The aussie also struggled against the yen for the fourth consecutive day. The AUD/JPY pair dropped to a low of 87.40 at the opening of today's session. But as with the AUD/USD pair, it is currently making a recovery and is trading at 88.22.

Initial resistance for the AUD/JPY is at 88.05, followed by 88.27. Meanwhile, initial support is at 87.15, followed by 86.93.

By FX Strategy Team, Published on 22nd of August 2013
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