AUDNZD – SELL – 14th May 2020

AUDNZD – SELL – 14th May 2020 (Closed)

Good morning team,

This morning we are focusing on the AUD as we will see the next round of unemployment data at 11:30am.

Employment change is forecast at -575k with the unemployment rate expected to reach 8.3%.

This is going to be the first real look at the damage from the corona-virus, if the figures are matched or come out worse than expected it will be the highest unemployment since August 1997.

Some economists are forecasting unemployment to reach 10%.

Australian Unemployment Rate

On the larger scale the AUD also looks vulnerable to China and US tensions.

China is planning a large scale military exercise in the South China sea, it was also reported that the a US Navy war ship sailed through the Taiwan Strait.

In other news Trump has also banned an international equity portfolio (used by retired military personnel) from investing into any Chinese stocks.

As tensions sour, the AUD will again be the number one casualty.

AUDNZD – Technical Analysis

Looking at a technical perspective on the daily charts there is a bearish divergence on the RSI. This has worked fairly well spotting reversals previously.

The 1.0760 level also appears to be a key resistance zone.

Trade Setup: SELL market execution (current rate 1.0765), stop loss set at 1.0815 and take profit target 1.0620.

Stop loss: 50 pips

Take profit: 145 pips

Trade Setup
SELL - Market Execution

Entry
1.0765

Take Profit
1.0620

Stop Loss
1.0815