It is clear that there will be no rubber stamping of Trump’s policies and initiatives going forward. Going by rules in place, voting and repealing of Obamacare is not by majority votes but rather a systematic voting process both by Democrats and Republicans. Some Republicans have stated clearly that they won’t be voting for this new Healthcare act. As a result, Trump will find it hard to attain the minimum votes needed to repeal and replace this popular healthcare system and if Trump administration won’t, it will be against his campaign pledges. It looks like this is just the pointer of things to come, what happens if his campaign promises as tax reforms and infrastructure development initiatives won’t get through congress? This is what got investors edgy and consequently the USD stumbled yesterday. The AUD dollar on the other hand was firm and as the market got fidgety over the repeal and replace smooth sail, the AUD took advantage of the uncertainty. Marie Le Pen’s presidential debate defeat poured cold water on French position in the EU. The Euro soared as risk averse investors shifted their capital to European equity markets further buoying the Euro bulls. The RBNZ rate decision later on in the NY session should be defining. I don’t really think Governor Wheller will talk about further easing. Most central banks are looking to tighten and they actually need not to do anything. The economy is expanding and inflation brought by the rising house prices and improving wages plus employment should inject some positivity to the Kiwi and commodity currency bulls. We should however wait and see what they have to say in their statement before we jump to conclusions.
Today, I will look to buy the AUD and short the Euro and GBP. The 4HR timeframe shows an overextended price action with a full candlestick which closed above the upper BB. This means the Euro is momentarily overpriced and correction is close. OBV and stochastics are in the overbought territory and trending down and it will be good to purchase the AUD and have some positive carry trade in the process. In general, you should buy the AUD and NZD while dumping the EUR and GBP.
So trade as follows with a risk reward ratio of 1:2-3
Trade as follows for the EURAUD
Sell: 1.4075
Stop Loss: 1.4110
Take Profit: 1.4000
Have good trading day.

EURAUD 4HR chart-22.03.2017

Source: Dalmas Ngetich

EURAUD 30 min chart-22.03.2017

Source: Dalmas Ngetich

2 thoughts on “EURAUD DAILY ANALYSIS FOR 22.03.2017”

  1. Jim Reddihough says:

    That’s worked very nicely today.

  2. Dalmas Ngetich - FOREX.TODAY says:

    Temporarily though, nice if you had scalped it.

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