Looking Forward to buy valleys in AUDNZD (extract from Weekly Market Forecast 2nd of February 2014)

We were waiting for quite some time for the AUDNZD pair to break the down-move trend line on the daily chart. The pair did break the trend line, and traded higher as can be seen in the daily chart below. This is a critical break, and I think the pair may continue to trade higher from here. The pair looks like has formed a medium term bottom on the weekly and monthly chart. So, I think we should look for short term buy opportunities.

The pair has cleared the 200 moving average on the 4 hour chart. The pair might retrace some of the recent gains before continuing trading higher. The 1.0660/40 level may now act as a strong support for the pair in the short to medium term, as shown in the 4 hour chart below. So, every pullback followed by a bullish divergence should present us a buy opportunity, in my opinion.

Initial target should be around the 1.1000 level, and final target could be around the 1.1300 level. Stop should be placed below the last low created.

Major events scheduled in the upcoming week
Another exciting week came to an end. One of the major risk events was the Fed interest rate decision. The central bank fulfilled the expectations of the market and reduced the bond purchases by another $10B. There are also chances that they will taper again in the next meeting. However, that will depend a lot on the upcoming Nonfarm payroll data on Friday. The market is again expecting a healthy reading of 184K, up from the last reading of 74K. The US data which was released during the last week was mixed. The pairs like EURUSD and GBPUSD traded lower during the last week. We have an interesting week coming up, as a lot of economic releases are scheduled.

Let us look at all major events lined up in the upcoming week.
Sunday – Australia’s building approvals data.

Monday – German manufacturing PMI, Italian manufacturing PMI, Spanish manufacturing PMI, French manufacturing PMI, Euro zone manufacturing PMI, UK manufacturing PMI, ISM manufacturing PMI and RBA interest rate decision.

Tuesday – UK construction PMI, US factory orders and New Zealand employment data.

Wednesday – Spanish services PMI, Italian services PMI, German services PMI, French services PMI, Euro zone services PMI, UK services PMI, US ADP Nonfarm employment change and ISM Non-manufacturing PMI.

Thursday – German factory orders, BOE interest rate decision, ECB interest rate decision, Canadian Ivey PMI and the UK trade balance data.

Friday – UK industrial production data, UK manufacturing production data, German industrial production data, US NFP data and US unemployment rate.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, EURGBP, USDJPY, EURJPY, USDCAD, EURCAD, GBPCAD, AUDUSD, NZDUSD, EURAUD, GBPAUD, USDTRY, EURTRY, USDZAR and INDICES.
Get it HERE: Vladimir’s Markets Forecast

Enjoy the weekend friends!

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