The AUDUSD is one of the weaker currency pairs in the recent times. The pair in the last week, gained some momentum after the poor Nonfarm payrolls data for the US. The pair is currently testing the opposite band of Bollinger on the daily chart, and the RSI is also testing the 50 level with a potential of a break to the upside. The pair looks good, and I think we should be looking to buy the dips in AUDUSD.
Looking at the 4 hour chart of AUDUSD, the pair has an important up-move trend line, as can be seen in the chart below. We want the pair to hold this trend line in order for our bullish bias to be valid. There are two ways to enter into a buy trade, as highlighted in the 4 hour chart below. First, if the pair breaks the key resistance and retest it again, then we will jump into a buy trade. Another way would be buying dips as long as the trend line holds as plotted on the chart below. I think every small retrace should present us a buy opportunity.
Initial target should be around the 0.9180 level, and final target could be at around the 0.9280 level as shown below. Stop should be placed below the up-move trend line.
Major events scheduled in the upcoming week
This past week the market was mostly ranging, but on Friday, we witnessed some action after the release of the Nonfarm payrolls data, which registered a disappointing reading of 74K. Earlier, during the week, two central bank’s rate decision were lined up. The outcome of these events were as expected. At the ECB press conference, the President Mario Draghi highlighted the importance of inflation and interest rates with the impact on the Euro zone economy. The EURUSD traded as low as 1.3550, but later recovered to trade about the 1.3620 level.
Let us look at all major events lined up in the upcoming week.
Sunday – Australia’s home sales data.
Monday – Italian production data and the US federal budget balance data.
Tuesday – UK’ CPI data and the US retail sales data.
Wednesday – Swiss retail sales data, Spanish CPI, US CPI data and PPI data.
Thursday – Australia’s employment data, Euro zone CPI data, US core CPI data and Philadelphia fed manufacturing index.
Friday – Swiss PPI data, UK retail sales data, US housing data, industrial production figures and the Michigan consumer sentiment.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, USDCAD, EURGBP, EURJPY, NZDUSD, GOLD, UZDZAR, USDTRY and DOW JONES.
Get it HERE: Vladimir’s Markets Forecast
Enjoy the weekend friends!
