The Australian dollar is trading higher Intraday against a few major currencies, including the US dollar and the New Zealand dollar. The AUDNZD pair has climbed a lot during the past few days, and it is likely to correct lower in the coming days. So, I think we should avoid chasing this pair higher from now on and look for possible sell opportunities.
There is a monster bullish trend line on the 4 hour chart for the AUDNZD pair, and there is a solid support around the 1.1150 level. If the pair moves lower from the current levels, breaks the trend line and support area and settles below, then we can enter into a sell trade. Remember, if the pair rallies, then we will analyze later for the next trade setup.
Initial target should be around the 1.1080 level, and final target could be around the 1.1040 level. Stop should be placed above the broken support area.
Reviewing yesterday’s events and trades
Yesterday, the US factory orders and the beige book were published during the NY session. The outcome was mostly in line with the expectation, but the US dollar was seen consolidating against the Euro and the British pound. Moreover, the Australian retail sales and the trade balance data were released during the Asian session. The outcome was on the positive side, and as a result the Aussie was seen trading higher against most of its counterparts, including the US dollar. The NZDUSD pair on the other hand is trading a touch lower.
Fundamental Outlook for the day
Today is an important day, as a lot of significant events are lined up during the London and the NY session. The most important one will be the ECB interest rate decisions and press conference. Many investors will be eyeing the press conference very closely to know more about the central bank plans about the possible introduction of QE. Moreover, the BOE interest rate decision is also lined up, which is not expected to cause fireworks. The US ADP nonfarm employment change figures will also be published around the same time, which might ignite swing moves in the US dollar. So, we need to be careful while trading during the NY session.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
