AUD/NZD is likely to see more action this week with top tier catalysts coming from both Australia and New Zealand.
Will the major resistance area retest draw in sellers or is an upside break ahead?
AUD/NZD Resistance Setup?
In the next couple of days, we’ve got the latest GDP report from New Zealand and the latest Australian employment update coming to potentially get AUD/NZD moving. Expectations are for the NZ GDP number to rebound from its -1.0% read in 2021 Q1, and for Australia to post an addition of 30.5K jobs in May after a round of job losses in April.
These events are top tier catalysts to watch and if they do surprise, expect AUD/NZD to make moves in the short-term. And with the pair retesting a strong resistance area around the 1.0800 – 1.0900 handles and stochastic showing overbought conditions on the daily chart, the setup to watch out for is a bearish one if NZ GDP rebounds greater than 0.5% expected, and Aussie jobs comes in below 30.5K expected. That scenario could draw in both fundamental and technical sellers for both a short-term and swing move in the area.
For the bulls on AUD/NZD, surprise weakness from NZ GDP and Australian jobs coming inline or better could spark a bullish reaction on the pair. If that’s the case, keep an eye out for a sustained break above the 1.0900 handle before considering a long position. At that point, the recent uptrend will likely be re-validated for the short-term and draw in buyers looking to play a fresh momentum move higher.
What do you all think? Will we see AUD/NZD make moves tomorrow or will the events be volatility duds? Let me know in the comments section below!
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