Today we have an interesting opportunity for AUDUSD. The Australian dollar is trading a touch higher against the US dollar, but less compared to other currencies such as New Zealand dollar and the Euro. However, there are chances that the pair might trade higher in the coming sessions. So, I think we should be looking for buy opportunities in the short term.
Looking at the 4 hour chart of AUDUSD, there is a monster resistance at around the 0.9310 level. If the pair breaks higher and closes above the mentioned resistance zone, then we can jump into a buy trade. Remember, wait for the pair to close above the resistance before entering into a trade.
Initial target should be around 0.9380, and final target could be around the last high. Stop should be placed below the 0.9240 level.
Reviewing yesterday’s events and trades
Yesterday, the US services PMI and the ISM non-manufacturing PMI data were published in the NY session. The outcome was on the positive side, as both the PMI’s registered a healthy reading, and came better than expected. However, the US dollar was unmoved and was unable to gain ground despite positive numbers. Furthermore, the US dollar is dumped during the Asian and European session. The EURUSD is trading above the 1.3910 level and GBPUSD above the 1.6920 level.
Fundamental Outlook for the day
Today, there is no major economic release in the US. The US trade balance data will be released during the NY session, which is less likely to provide a major support to the US dollar. Other than this, the Canadian trade balance and Ivey PMI data will be published, which is likely to act as a catalyst for the USDCAD pair in the short term. Moreover, the New Zealand’s employment data will be released during the next Asian session, which might ignite some swing moves in the NZDUSD pair.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, NZDUSD, USDCAD and AUDNZD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
