I’m looking at this simple risk-on play to start the week while no major catalysts are on deck.
Check out this retest setup!
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:
U.S. President Biden issues waivers for Iran’s sanctions
Australia’s AIG services index improved from 49.6 to 56.2Australian ANZ job advertisements down by 0.3% after earlier 5.8% slide
Chinese Caixin services PMI dipped from 53.1 to 51.4 vs. 50.5 forecast
Australian retail sales sank another 4.4% in December, but still up 8.2% in Q4
Australian gov’t considering reopening borders to visa holders soon
Asian shares slip as strong U.S. jobs report weighs on bonds
State of emergency declared in Ottawa due to protests
ECB official Knot projects first rate hike in Q4 2022
Swiss jobless rate improved from 2.4% to 2.3% in January
German industrial production slowed 0.3% vs. projected 0.4% uptick
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone Sentix investor confidence index at 9:30 am GMT
ECB head Lagarde’s speech at 3:45 pm GMT
U.S. consumer credit at 8:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
It looks like a reversal is brewing for AUD/USD!
The pair busted through its descending trend line on the hourly time frame and appears to be completing a retest of the broken resistance.This happens to be in line with the 61.8% Fibonacci retracement level near the .7050 minor psychological mark.
If that ain’t enough to encourage Aussie bulls to charge, the 100 SMA just made a bullish moving average crossover above the 200 SMA to confirm that support levels are likely to hold.
Stochastic is also turning higher to show that buyers are returning while exhausted sellers take it easy. If support holds, AUD/USD could make its way back up to the swing high at .7168 and beyond!Note that things are looking up for Australia so far this week, as the AIG services PMI climbed back above 50.0 to reflect expansion. Although the retail sales report printed a 4.4% slide for December, the overall 8.2% gain in Q4 seems to be reassuring for AUD bulls.
News that the Land Down Under could soon reopen borders to welcome visa holders might also be lift spending and growth expectations in the coming months.