Originally updated: 08:00
Trading Bias: SHORT
Currency pair: AUD/NZD
Current Sentiment: Bearish
In today’s trading session we will be focusing on selling opportunities AUD/NZD.
The USD recovered some of yesterdays unexpected losses overnight whilst the AUD underperformed following worse than expected data from China, confirming slowing expansion in the region. The AUD led the declines with AUD/USD and AUD/NZD breaking below the 0.7600 and 1.1000 levels. The downside in the AUD was also helped by disappointing Australian Consumer Confidence.
The NZD remained supported overnight due to cross related buying against the AUD – this could continue to provide some minor support for the NZD and help push AUD/NZD lower.
We expect this pair to fall lower during today’s session.
There is strong resistance at 1.0150 should it rally that far, failing that, around 1.0100 is noted as medium term level of resistance which could provide trading opportunities should the price pull back. Look for the price to bounce off this level if it retraces back to it.
Remember to be aware of intra-day news as this can very often change the sentiment which makes our trade weaker. Look for any news that could negative for the NZD which would change the sentiment on this pair
Other Market Moving News:
News overnight news is relatively limited with the USD pulling away from its lows after yesterdays sharp losses, whilst the euro remains lower across the board ahead of the ECB rate decision. Also WTI Crude futures gained overnight, due to API Crude Oil Inventories showing a significantly lower build in Oil stock piles – this rise in WTI has also strengthened the CAD over the past few days so it’s worth monitoring.
We also have the ECB Rate Decision coming out today, but with the ECB likely to remain on hold for now it will likely be a non-event, however Draghi will likely be questioned on any potential upcoming adjustments to the current QE programme, which is worth keeping an eye on.
To get daily market insights from Jarratt Davis delivered to your inbox simply enter your name and email below:
The post Selling opportunities AUD/NZD – Forex Trading Tips appeared first on Jarratt Davis.