The Australian dollar is trading lower against most major currencies, as the recent economic data came as a disappointment. The AUDCAD pair is also trading lower, and it looks like the pair might continue trading lower after a short correction. So, we should be looking forward to sell rallies and wait for the right time to jump into a sell trade.
There was a bullish trend line on the 4hour chart for the AUDCAD pair, which was breached earlier. There was also a support around the 1.0175 level, which might act as a resistance now. So, if the pair corrects a bit higher from the current levels as highlighted in the chart above, trades closer to the mentioned resistance area and forms a bearish divergence, then we can jump into a sell trade.
Initial target should be around the 1.0050 level, and final target could be around the 1.0010 level. Stop should be above the 1.0220 level.
Reviewing yesterday’s events and trades
Yesterday, there were a lot of moves noted in the market, as the ECB press conference was on the tap. There was nothing new mentioned by the ECB’s Draghi. The EURUSD pair climbed during the speech, but the up-move was daunted as the US jobless claims data was also released at the same time. The US jobless claims fell to 289K, which was way below the expectation of 305K. This ignited a rally in the US dollar.
Fundamental Outlook for the day
Today, the US nonfarm productivity and the wholesale inventories data will be published. The outcome is unlikely to cause swing moves in the US dollar. The most important event for the day will be the Canadian employment report, which has the potential to cause a lot of moves in the Canadian dollar. The market is expecting the unemployment rate to fall from 7.1% to 7.0%. If outcome comes out positive, then the Canadian dollar might gain traction moving ahead.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, AUDUSD, USDCAD, GBPCHF and GBPJPY.
Get it HERE: Vladimir’s Markets Forecast
Have a nice weekend friends. Happy trading!
