The Australian dollar crashed earlier during the Asian session, as the Australian jobs report highlighted weakness in the labor market. The AUDUSD pair is trading lower, and broke the 0.9310 support level. I think more downside is likely in the short term, so we should be looking for sell opportunities moving ahead.
There was a bullish trend line on the hourly chart for the AUDUSD pair, which was breached earlier. If the pair corrects a bit higher from the current levels as highlighted in the chart above and trades closer to the broken trend line area around the 9300-9310 levels, then we can jump into a sell trade. Remember, wait for the right time to enter into a trade, and don’t rush.
Initial target should be around the 0.9220 level, and final target could be around the 200 day moving average. Stop should be above the 0.9380 level.
Reviewing yesterday’s events and trades
Yesterday, there were a lot of moves noted in the market. The most interesting one was the USDJPY pair, as it fell more than 50 pips in a matter of minutes. The US dollar was also seen trading lower against the Euro and the British pound. The EURUSD pair jumped towards the 1.3390 level sharply around the same time. Moreover, the AUDUSD pair has been trading lower since the release of the jobs report, which came as a disappointment. The Aussie unemployment rate jumped to 6.4%, which caught the attention of AUDUSD sellers.
Fundamental Outlook for the day
Today, there are two key events lined up during the day – the ECB interest rate decision and the BOE interest rate decision. The market is not expecting any surprise from the BOE, but the ECB press conference can be a major risk event. It would be interesting to see what the ECB’s Draghi has to say. It might impact the Euro a lot in the short term. Moreover, the US initial jobless claims data will also be published during the NY session, which can cause some moves in the US dollar.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, GBPCHF, USDJPY, GBPJPY, EURAUD, AUDCAD and USDCAD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
