The Australian dollar struggled a lot during the past couple of weeks against the US dollar. The AUDUSD pair is still under immense selling pressure, which could take it lower in the coming days. We might even see a test of the 0.8000 area. So, I think we should be looking for sell opportunities in the short term.
There is a bearish trend line formed on the 4 hour chart of the AUDUSD pair, which might act as a resistance if the pair climbs from the current levels. So, if the pair corrects higher moving ahead, moves closer to the highlighted resistance area around the 0.8280-0.8300 area, makes a stop and forms a bearish divergence, then we can enter into a sell trade.
Initial target should be around the 0.8180 level, and final target could be around the 0.8120 level. Stop should be placed above the trend line and resistance area.
Major events scheduled in the upcoming week
The US dollar finally showed some signs of weakness as it was seen trading lower against the currencies such as the Euro and the Japanese. There were some currencies which continued to struggle against the US dollar including the New Zealand and the Australian dollar. The Aussie dollar was the worst performer of the week as it headed towards the 0.8200 support area. There was no major release in the US this past week, which might be the reason for a correction in the US dollar.
Let us look at all major events lined up in the upcoming week.
Sunday – In Japan Tankan Large Manufacturers Index.
Monday – Swiss PPI, US industrial production and Chinese HSBC manufacturing PMI.
Tuesday – German manufacturing PMI, German services PMI, Euro zone manufacturing and services PMI, UK CPI, German ZEW economic sentiment and US Building permits data.
Wednesday –UK employment data, Euro zone CPI, US CPI and New Zealand GDP.
Thursday – German IFO Business climate index, UK retail sales and Philadelphia Fed manufacturing index.
Friday –German PPI, Canadian CPI and Canadian retail sales.
This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast
Happy trading friends!
