AUD/NZD Trade Of The Week: Looking For A Break Of 1.0928 To See 1.1060 Area
FX Week In Review
USD
An interesting week for the Dollar a strong start as we pushed up to the high of 95.53 and into resistance, but Friday brought a huge drop back to 94.47, so finishing largely unchanged.
EUR
The Euro still on life support, not showing much life the EXY closing virtually unchanged at 117.00.
GBP
The Pound had a mixed week, as it was bounced around by Brexit news and the EU summit and looming Chequers summit. GBP was unchanged against most majors, even good Q1 GDP revisions did not help.
YEN
With no data or significant news out of Japan the JPY was not lifted, so not much to report.
The Week Ahead
Summer is finally here, as we put our summer trading hats on, or as the sun is out in the UK (rare in the summer) we raise a Pimm’s to summer trading. We have a different strategy to a slower period as people take time out of the office for the next few weeks. But last week did not disappoint with the US Dollar taking centre stage with rising inflation causing the moves. This leads on to some important inflation data last week, with some inflation targets hit in a few major economies, all this from the lows in inflation and growth from the last crisis in 2008. We now come up against a great economic problem of rising inflation and faltering growth, a great crossroad and opportunity for currency trading.
We will see if the run into summer 2018 will be wild or slow, we have the 4th July celebrations in the US then the FOMC and Friday’s NFP. Plus, some PMI prints scattered through the week.
We repeat every week, the US trade war, with China always of interest in their response and Canada introducing a like for like Dollar tariff on many products. We also had President Trump angry with Harley Davison for moving some production abroad to negate the trade tariffs and last but not least Brexit dominating the headlines.
Again, we feel the biggest development is England’s continued progression in the World cup! Happy Trading and watching your team in the World Cup!
Major Data Releases
*Data Supplied by fxstreet.com
Currency Pairs to Watch
We will be developing our ‘Currency Pairs to Watch’ list to have a great overview of the week to help you keep an eye on some pairs. We now have an accompanying video to show our weekly watch list. The link to be posted in pelican.
We will be interested in the USD, GBP, and JPY this week. We will be looking at the ’trade of the week’ and the GBP/JPY, GBP/USD, and USD/CAD.
Trade of the Week
So, last week we looked at the EURCAD, ‘So we will look for the Sunday open to not be very bullish, but a move below 1.5420 we will look to test 1.53.’ Again, a great weekly trade we came within 14 pips of target and after a strong Monday (but 1.5594 held) we fell to our target area.
Today we will be looking at the AUD/NZD, the Aussie has had a strong run last week, and we have moved to good resistance area of 1.0928, with a strong move and the stochastics being overbought, we expect a sell-off early next week, but if we then continue higher we expect to see 1.1060 and 1.1270.
We are looking for a break of 1.0928 to see the 1.1060 area.
Weekly Progress Report
2 Reports this week, the NZDUSD and AUDJPY, the NZDUSD hit the target area and made some pips the AUDJPY did not trigger.
HAPPY TRADING!
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