Hi Friends,
I hope everyone enjoyed the weekend. Let’s get started with this week. There can be several trade opportunities, and we are looking to jump in all the good ones.
We have been very bullish AUDNZD from the last couple of days, and we are still looking to buy the Valleys. Earlier today, AUDNZD retreated from the daily 20 MA (Moving average) and trading lower from the daily highs as shown in the chart below.
I still have the bullish view on this pair, and hence we will be looking to buy the Valleys in AUDNZD. Any drop lower can present us a buying opportunity. There is a small trend line on 4H chart as shown below. Supports are at around 1.14 initially and then 1.1350/40 as marked with blue lines on the chart. We can keep an eye on these areas to jump into the trade. Either we can get into the trade early at around 1.14 if have a bullish divergence on 1H chart otherwise we will look to buy from the area where trend line and second support coincide as plotted on the chart along with bullish divergence on 1H chart.
Initial target would be previous daily high at around 1.145. However, I think AUDNZD should trade higher close to the upper band of the Bollinger on the daily chart so you can aim for a higher target as well taking some profits at the initial target.
We have a very light data release today in both European and NY session. I do not expect any major spikes either way for the day. Only thing to watch is National Australia Bank (NAB) Business Confidence Index in the Asian session later which can have a light impact on Australian pairs.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, AUDUSD, SILVER, CORN, DOW JONES, NZDUSD, USDCAD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast
I wish everyone a good trading week. Happy trading!
Vladimir Ribakov
