I’m seeing several inflection points lining up on this AUD/NZD area of interest.
Is the trend still my friend on this one?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Crude oil hits three-year highs on supply shortages in Europe
U.S. House Speaker Pelosi sets infrastructure bill vote on Thursday
Cryptocurrencies bounce back after selloff on Chinese crackdown
Japanese gov’t to lift all COVID-19 states of emergency this week
BOJ Gov. Kuroda maintains focus on pandemic despite weak inflation
APPEC: Global oil demand to reach pre-pandemic levels by early 2022
Power shortages in China weigh on production at major factories
Olaf Scholz to succeed Angela Merkel as German Chancellor
European shares rise after German elections relief, crude oil rally
Eurozone private loans steady at 4.2% vs. projected uptick to 4.3%
Upcoming Potential Catalysts on the Economic Calendar:
ECB President Lagarde’s speech at 11:45 pm GMT
FOMC member Evans’ testimony at 12:00 pm GMT
U.S. durable goods orders report at 12:30 pm GMT
FOMC member Williams’ speech at 4:00 pm GMT
FOMC member Brainard testifies at 4:15 pm GMT
BOE Governor Bailey’s speech at 6:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: AUD/NZD
I’m inclined to steer clear of dollar pairs for today since a handful of FOMC members are scheduled to give speeches.
Instead I’m looking at this neat trend setup on the hourly chart of AUD/NZD.
As you can see from the chart above, price is testing a confluence of inflection points around the 1.0360 area.
This is right smack in line with a long-term descending trend line, the top of its short-term rising channel, and a former support zone.
Stochastic is hinting that the ceiling is likely to hold again since the oscillator is turning lower from the overbought zone. However, moving averages are suggesting a return in bullish pressure.
If sellers defend the resistance, I’m eyeing the short-term channel bottom as an initial target then setting my sights on the lows at 1.0280 next.
After all, Aussie bears might be eager to come out ahead of the Land Down Under’s retail sales report due tomorrow!
