The Australian dollar surprised the investors with its resiliency during this past week, as it managed to hold the ground against the strong and rising US dollar. Similarly, it held the ground against the Canadian dollar, as can be seen in the daily chart below. I think buying is a good option in the short term for the AUDUSD pair.
There is a strong support area around the 0.9330-20 area on the hourly chart of the AUDUSD pair, as can be seen in the chart below. If the pair follows a correction path, moves a bit lower from the current levels towards the mentioned support area, makes a stop and forms a bullish divergence, then we can enter into a buy trade.
Initial target should be around the 0.9440 level, and final target could be around the 0.9500 level. Stop should be placed below the 0.9290 level.
Major events scheduled in the upcoming week
The US dollar traded higher and closed the week on the positive note. The biggest loser turned out to be the Euro, as the ECB announced a rate cut, which came as a shock for the investors. The EURUSD pair traded below the 1.2950 support area, and is likely setting up for a nasty week ahead. The AUDUSD pair performed well comparatively this week, and held the ground. Moreover, the US NFP data was published during this week, which came as a disappointment for the US dollar buyers, and resulted in a correction in the pairs such as EURUSD and GBPUSD.
Let us look at all major events lined up in the upcoming week.
Sunday – Japanese GDP, Chinese trade balance data.
Monday – Swiss unemployment data, Swiss CPI, Swiss retail sales and Australia’s home loans data.
Tuesday – UK manufacturing production, UK industrial production data, UK trade balance data and Australia’s Westpac consumer sentiment.
Wednesday –RBNZ interest rate decision, Australia’s employment data and Chinese CPI data.
Thursday – German CPI, French CPI, US initial jobless claims, US federal budget balance data and New Zealand’s Business MI.
Friday –Japanese industrial production, Spanish CPI, Euro zone industrial production data, Italian CPI, US retail sales data and Michigan consumer sentiment.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
