Good morning team,
Technical charts will be updated over the next 1 hour. For now our attention is on the AUDNZD as the pair appear to have broken a negative trend line resistance just prior to the next RBA statement. This morning Australia will provide imports & exports data at 11:30am, however, I do not believe there will be much volatility until the RBA at 2:30pm this afternoon. The RBA will provide the next interest rate decision and policy statement.
Here in Australia we have fortunately been somewhat sheltered from the Covid-19 pandemic, and the economy appears to be recovering a lot quicker than many analysts had previously forecast. Unemployment has dropped to 5.6%, retail sales rose by 1.4% beating the forecast of 1% in March, the housing market is currently surging higher along with the manufacturing sector. The market consensus is for interest rates to remain on hold, however all eyes will be on the tone of the statement along with any indication into the QE program. A positive tone could send the AUD higher, especially as copper and iron ore futures are moving in a strong upwards trend.
AUDNZD – Weekly Charts
There has been a doji weekly candle which suggests a possible change in trend.
AUDNZD – 1 Hour Charts
The current price action looks bullish with a 5 waves sequence, along with a bull flag structure.
There has also been a negative trend line breakout suggesting bulls are in control.
Trade Setup: BUY Market execution, current price 1.0777, stop loss 1.0700 and take profit target 1.0900.
Stop loss: 77 pips
Take profit: 123 pips