Good evening Forex Kings,
This evening we are moving our attention to the AUDNZD. The AUD has been a top performer over the past week and appears to have overreacted to some positive news last week.
China initially lifted their travel restrictions across Wuhan providing some support to the AUD. However towards the end of the week the focus will be shifting towards Australian unemployment and Chinas GDP on Friday. Both events are forecast to take a large hit.
This may result in some weakness across all AUD pairs.
Additionally over the next couple of weeks we will see the US enter earnings season which could also weigh on commodity related currencies.
AUDNZD – Technical Analysis
We are approaching a double top zone which also falls into the 161% FIB extension. The 161% FIB level is a key area to target for profit taking. This suggests we could see a sizeable pull back from the level based on buyers taking profit and sellers stepping into the market.
Trade Setup: SELL AUDNZD (market order, current price 1.0487) – Stop loss 1.0560 and take profit target 1.0310
Stop loss: 73 PIPS
Take Profit: 177 PIPS