I’m seeing this neat little double backside breakout and pullback on the short-term chart of AUD/NZD.
Is that this a chance to catch the reversal?
Earlier than transferring on, ICYMI, yesterday’s watchlist appeared on the short-term vary on EUR/CAD forward of the central financial institution discussion board this week. Make sure you try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Knowledge:
U.S. CB shopper 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 reason for greater inflation
U.S. gov’t officers mulling worth cap on Russian oil with Africa & South America
Japanese retail gross sales superior to three.6% y/y vs. 4.0% forecast in Might
Australian retail gross sales put up one other 0.9% acquire vs. projected 0.3% uptick
U.Ok. BRC store worth index up from 2.8% to three.1%
OPEC conferences happening
ECB head Lagarde, BOE Governor Bailey & Fed head Powell to take part in panel dialogue at 1:00 pm GMT
U.S. EIA crude oil inventories at 3:00 pm GMT
Japanese preliminary industrial manufacturing at 11:50 pm GMT
Chinese language official manufacturing and non-manufacturing PMI (June 30, 1:00 am GMT)
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
What to Watch: AUD/NZD
I’m making an attempt to keep away from the potential fireworks from the ECB discussion board on central banking as we speak, so I’m simply gonna concentrate on this candy technical setup on AUD/NZD.
The pair simply busted by way of the neckline of its double backside sample on the hourly timeframe, which signifies that a reversal from the downtrend is due.
Missed this breakout? Don’t fret!
You would possibly nonetheless have an opportunity to catch the rally on this fast pullback to the damaged neckline, which now appears to be holding as assist.
If that’s the case, AUD/NZD may be in for a rally that’s the identical top because the chart sample or roughly 100 pips.
Technical indicators appear to be shifting in favor of extra beneficial properties, too.
The 100 SMA is gearing up for a bullish transferring common crossover from the 200 SMA, confirming that consumers are able to step up their recreation. The pair is buying and selling above these dynamic inflection factors, so these might additionally maintain as assist on a bigger dip.
Stochastic has some room to maneuver south earlier than reflecting exhaustion amongst sellers, however turning greater may be the inexperienced gentle for bulls cost quickly.
As for potential catalysts, I’d hold a watch out for New Zealand’s ANZ enterprise confidence index and China’s official PMIs within the subsequent session!