Today we will look to buy valleys in AUDNZD. I have been very bullish on this pair from some time now, and I think every dip should present a buy opportunity. AUDNZD is creating a bullish hidden divergence on the 4 hour chart, and also creating a continuing divergence on the 1 hour chart. AUDNZD has several supports as plotted on the 1 hour chart below, and we would be looking to buy from any of these support levels ranging from 1.1510 to 1.1470.
We have two ways to enter a buy trade. First, look for AUDNZD to make a stop at any of the support levels, and wait for the pair to form a bullish candle pattern on the 1 hour chart with MACD changing to the upside to jump in a trade. Secondly, we can enter on a break of the down move trend line on the 15 minute chart as shown below.
Initial target should be around the next down move trend line as plotted on the 1 hour chart at around 1.1560, and final target could be the last high. Stop should be placed below the last low.
Reviewing yesterday’s events and trades
EURUSD dropped around 100 pips yesterday following dovish comments from ECB President Draghi, and found support at around 1.3110. GBPUSD too dropped 80 pips after rising to 1.5665. US Initial jobless claims dropped to 323K from the previous measure of 332K, ISM Non-Manufacturing PMI jumped to 58.6 and ADP Nonfarm Employment change was also around expectations, which overall helped US dollar to climb higher.
Fundamental Outlook for the day
Today as discussed in Yesterday’s post is one of the most important event days of the month. US Nonfarm payrolls and unemployment rate will be released later in the day with expectations of 180K and 7.4% respectively. Any strong labor data will solidify the bets of September taper, which can immensely help the US Dollar. Other than this Canadian Employment data is also scheduled along with the US employment data. A lot of volatility is expected, and if you are not sure about any trade, then I would advise to stay away until next week.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, GBPCHF, USDCAD, GBPUSD, SILVER and USDCHF.
Get it HERE: Vladimir’s Markets Forecast
Enjoy Weekend friends. Happy trading!
