Daily Forex News and Watchlist: AUD/NZD

I’m seeing this neat little double bottom breakout and pullback on the short-term chart of AUD/NZD.

Is this an opportunity to catch the reversal?

Before moving on, ICYMI, yesterday’s watchlist looked at the short-term range on EUR/CAD ahead of the central bank forum this week. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. CB consumer confidence index sank from 103.2 to 98.7 vs. 100.0 forecast

U.S. Richmond manufacturing index down from -9 to -19

Fed official Williams: Recession not my base case

Fed official Daly: Demand is half the cause of higher inflation

U.S. gov’t officials mulling price cap on Russian oil with Africa & South America

Japanese retail sales advanced to 3.6% y/y vs. 4.0% forecast in May

Australian retail sales post another 0.9% gain vs. projected 0.3% uptick

U.K. BRC shop price index up from 2.8% to 3.1%

Upcoming Potential Catalysts on the Forex Economic Calendar:

OPEC meetings going on
ECB head Lagarde, BOE Governor Bailey & Fed head Powell to participate in panel discussion at 1:00 pm GMT
U.S. EIA crude oil inventories at 3:00 pm GMT
Japanese preliminary industrial production at 11:50 pm GMT
Chinese official manufacturing and non-manufacturing PMI (June 30, 1:00 am GMT)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/NZD

I’m trying to steer clear of the potential fireworks from the ECB forum on central banking today, so I’m just gonna focus on this sweet technical setup on AUD/NZD.

The pair just busted through the neckline of its double bottom pattern on the hourly time frame, which means that a reversal from the downtrend is due.

Missed this breakout? Don’t fret!

You might still have a chance to catch the rally on this quick pullback to the broken neckline, which now seems to be holding as support.

If that’s the case, AUD/NZD might be in for a rally that’s the same height as the chart pattern or roughly 100 pips.

Technical indicators seem to be shifting in favor of more gains, too.

The 100 SMA is gearing up for a bullish moving average crossover from the 200 SMA, confirming that buyers are ready to step up their game. The pair is trading above these dynamic inflection points, so these could also hold as support on a larger dip.

Stochastic has some room to move south before reflecting exhaustion among sellers, but turning higher might be the green light for bulls charge soon.

As for possible catalysts, I’d keep an eye out for New Zealand’s ANZ business confidence index and China’s official PMIs in the next session!