AUD/NZD‘s uptrend pullback may finally be running out of steam, but will this week’s economic updates give the bulls the juice to move higher?
Uptrend Continuation in AUD/NZD?
This week, we’ve got top tier economic events to potentially get AUD/NZD moving and shaking. For the Kiwi, the latest RBNZ monetary policy decision is on deck as a potential catalyst with expectations of no changes to policy but a possibility of a more optimistic tone on New Zealand’s recovery. And for the Aussie, the month employment from Australia is on deck with expectations to net gains, but lower than the previous read of 88K.
What we’re watching for this week is a better-than-expected read on Aussie jobs against the RBNZ re-iterating low odds of any tightening plans / citing economic concerns due to wave of disappointing updates (New Zealand economy contracts in Q4, New Zealand ANZ business confidence index down to -4.1, etc.)
If this scenario plays out, the odds are pretty good that the bullish technical patterns (e.g., support forming at Fibonacci retracement area/broken resistance, oversold stochastic signal), that we’re seeing on the four hour chart above may draw in AUD/NZD bulls.
If so, scaling in around the Fibonacci area is an entry strategy to consider, or for the more conservative, wait to see if volatility can get you in a long position at a better price around the 50% or 61% Fib levels.
What do you guys think? Is the support forming on AUD/NZD legit or will it be broken with this week’s economic updates?
Let me know in the comments below, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.
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