Morning Insights 21st March

Simon Alagbe

Analyst


INSTRUMENT: EURAUD

The Common currency is expected to regain some of the lost ground against the commodity supported Aussie. The Fibre is expected to enjoy relative strength from the hawkish stance of the President of the European Central Bank, Christine Lagarde at the Institut Montaigne, in Paris. She said "policies to fight climate change will probably raise inflation in the medium term although it would be deflationary in the long run". This statement was perceived by investors as a pointer that the ECB will continue to be aggressive in its monetary policies thereby accumulating strength in the process. 


TECHNICALS:

The pair rebounded from the 1.48713 support zone earlier today with the formation of a pin bar. The subsequent candle closed bullish acting as a confirmation for the signal. A bullish move is envisaged on the instrument with a take profit at 1.50613 and stop loss at 1.48360. 



FUNDAMENTALS: 

The only key fundamental today was the speech delivered by Lagarde. 

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