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RBA Surprises Markets and Cuts Rates

The RBA today cut rates to 1.75%
The forecast for today was at 2.00%, though some economists did project this could occur at the meeting today.
The concerns of the bank, remain with the current exchange rate. Perhaps realizing the USD is under pressure, taking some preemptive measures to control the exchange rate to prevent it from getting too bullish.
Commodity prices have been rising, which helps Australia, though perhaps a bit too early to tell. The Employment market in the past showed some u…
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Notable Currencies of the week

This weeks was essentially a sideways market for the most part if glancing at the daily charts. But the mostly sideways movements in the majority of the pairs clearly points to a few currencies that boldly stand out.
GBP - The pair was sold off quite aggressively in the previous week, but has made one of the strongest rebounds. The theme of the previous week was that the UK would not be looking to raise rates as soon as the market previously anticipated, but sense prevails as the economy stil
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AUD Ahead of Rate Statement - Why Today's Meeting is Important

Rate Statements are very common, and most of the time cause minor volatility to the market and then everything is back to normal. This week that is not the case for AUD.
As the Bank of Canada cut their rates unexpectedly last week, there is speculation the RBA may follow suit and announce an unexpected rate cut.
From the commodity corner, the RBNZ has already announced they will no longer raise rates and are even considering cutting. Canada has already cut, so it's natural to assume Australia wi…
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EURAUD - Daily Engulfing candle at 38.2% retracement

Overview
The EURAUD has been pulling back from a downtrend that started at the beginning of this year.
The daily engulfing candle at the 38.2 Fibonacci retracement hints that the pull back has completed and the downtrend may resume
Levels
1.4576 - 38.2% Retracement on Daily
1.3676 - Daily Trendline projection for Nov 2
1.3588 - 127% Extension on Daily (1.3800 - 1.4587)
1.3530 - Weekly 200 Moving Average
Figure 1 - EURAUD Daily - Engulfing candle at 38.2% Fib retracement

Figure
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Jignesh 2014年10月06日

The week closed off to draw a doji on the weekly chart, and the new week has the pair testing last week's low ahead of the London Open.  A daily close below this level (1.4340) will confirm a reversal is most likely on it's way.

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Jignesh 2014年10月09日

EURAUD is struggling to break through it's weekly range.  There has been a spike down which saw buyer's stepping in.  Once again, the pair is approaching that key 1.4340 opening range level.  A break below is required to build momentum to the downside.

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Jignesh 2014年10月13日

The pair has traded through the previous high to make a new high.  The 200 Daily MA comes in focus at 1.4626 to put pressure to the downside with a fib level slightly above at 1.4661 to contain any spikes.  This will be the last line in the sand for the pair for any downside pressure to remain.

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Jignesh 2014年10月24日

The 200 Daily SMA has held, and the downside looks promising.  The targets in this prediction still remain valid, however the completion time may take longer as the pair has spent quite a bit of time consolidating.

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Central Banks looking to cause some moves this week

This coming week we will have some speeches from several of the central banks.
Early in the week RBA Gov Stevens is up, and later we have the Fed's Yellen and ECB Draghi to finish off the week.
The overall expectation for the week does not call for much, but I will be looking for any type of surprise announcement that can shake out the market.
From the RBA - I have blogged about this before. We may see a shift in monetary policy, it all depends on which area they decide to focus on. In the last …
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Bimlesh 2014年08月18日

Frankly speaking, I understand nothing about fundamentals, actually haven't even tried to know what they mean.. and I never cared to know in detail about the ECB or the central bank or RBA... or how has inflation or interest rate effected.........................just I understand the end result, whether it is going to have movement or not and would be best if I understand which side...  :)

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Jignesh 2014年08月18日

I lean more to technicals myself as well.  But I think it is worthwhile reading what the central banks have to say, it often gives good clues for the direction, and then use technicals for the trades.

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Bimlesh 2014年08月18日

its worthwhile but Its very difficult for me to understand.. have tried few times trying to understand the fundamentals....

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Jignesh 2014年08月18日

I'll try to write a blog post this week to provide some insight on how I use fundamentals personally to trade the markets if that helps

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Bimlesh 2014年08月18日

personally I thank you in advance for that.. that would really be of gr8 help

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