Categories: Technical Analysis

Daily Forecast: Eyeing AUDNZD for long opportunities

Yesterday, market was very choppy as we witnessed false breakouts in AUDUSD, NZDUSD and EURAUD. This is the reason why I keep mentioning we need to be very careful while trading volume less market. Despite of weaker Core durable orders from the US, AUDUSD and NZDUSD did not manage to hold gains and traded lower.

Today, we will be looking for some safer entries, and might trade some cross currencies such as AUDNZD. AUDNZD might present an interesting long opportunity after the break of the triangle on the daily chart. I think the pair might retest the triangle again and then trade higher subsequently.

We already have a bullish hidden divergence on the 4H chart, and continuing divergence on the 1H chart. We have two ways to enter a long trade for AUDNZD. First way would be buying lower. We should be looking to buy from the support levels like 1.1440, 1.1420 and 1.1380 as plotted on the 1H chart below. Once we reach these support levels, then we will look for bullish candle pattern to form on the 1H chart to go long AUDNZD. Initial target would be the previous high around 1.1580, and final target should be around 1.1640 and 1.17. Stop should be placed below the previous low or support.

Home Trader Club - Learn How Trader Earns! VIP Membership Club for Traders by Vladimir Ribakov

Traders Workshop - For Real Success - You Need To Learn From The Best! Complete Trading School by Vladimir Ribakov

Another more aggressive way to trade AUDNZD would be if we break higher and breach a down move trend line as plotted on the 1H chart below. Any break of this trend line along with previous resistance may trigger a long trade. Targets would remain the same with a stop below the previous low before breaking higher.

Conference Board Consumer Confidence is due later in the US session. Economists are expecting a decline to 79.0 from previous 80.3. Any better than expected reading might help the US dollar, and any further decline might help some oversold pairs like AUDUSD and NZDUSD to regain some losses. Other than this, Richmond Manufacturing Index reading can also cause a short-term effect on risk sentiment.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, GBPUSD, USDJPY, EURJPY, EURAUD AND USDSGD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!

Advertisement

Click To Join Our Community Telegram Group

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.