25 May2022 FX Market Outlook
Price has made a strong recovery, and is now trading into the 50 day moving average (1.07632 as of now). There is also a pivot level here at 1.07573, and I am watching for a downside move
out of this level.
With Russia launching an all-out-assault on Ukraine, and cases of Monkey-pox spreading quickly in Europe I am definitely seeing the case for selling Euro again. On the 1H chart we can see the 50% fibonacci also ads confluence as a resistance around the 50 day SMA.
Bias is downside.
Price has traded into a significant region that has a number of historic pivots. The election rally is starting to slow down, and we’ve already seen the Aussie equities market rally falter post election. I am looking for the AUDUSD to turn to downside within the next 24-48 hours. See daily chart YTD below.
Bias: Short term upside followed by trend reversal.
BEAR IN MIND that FOMC minutes are due today, and there is a fair amount of news out of the US. RBNZ also are announcing rates, so it’s critical that USD and NZD traders keep an eye on the news reels today.