AUDUSD bound for another leg up? Daily Forecast extract

Yesterday’s Daily Forecast gave us nice moves in SILVER, USDJPY, EURUSD and AUDUSD, especially some nice pips from the SILVER and USDJPY trade setups.
Today, we are keeping an eye on AUDUSD as I think it may rise again to the previous highs. We had a mixed Retail sales data from US yesterday, which enabled USD to correct its six day bear run mainly against AUDUSD and EURUSD.
AUDUSD already has a bullish hidden divergence on the 4H chart along with a trend line as shown in the chart below. It is also heading towards some key supports plotted with the red lines in the chart.

On the 1H chart, we also have the continuing divergence. So, one can say there are a lot of signs for bullish bias on this pair in short term. AUDUSD is also moving in a down move channel as shown in the chart below. There can be two ways to enter a long trade for AUDUSD. First, either look for the channel break to the upside along with a break of previous resistance around 0.9110. For the second case, if we have a move down to the support zone of 0.9060 to 0.9030 and hold there, then we will look for a bullish candle pattern with MACD to a tick to the upside and a break of previous resistance level with the trend line to enter a long trade.

Initial target would be the channel duplication zone or previous major high at around 0.9150 as shown in the chart below. Secondary target would be the previous weekly high at around 0.9210, and stop would be the previous low.

We have two major events in the NY session starting with the US CPI figure followed by speech of FOMC member Bullard. Market is again paying attention into the speculation of September QE taper, so such events are very important to watch.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: USDJPY, USDCAD, EURAUD, EURGBP, GBPCHF and SILVER.

Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!

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