Good morning Forex Kings!
Tonight we see the largest traded event of the month as the Non – Farm Payroll from the US is reported.
We will also see average wages growth and unemployment rate coming from the US.
Chinese officials have confirmed they will be travelling to the US on Monday in an attempt to sign the phase one trade agreement. They are set to sign the deal on the 15th of January.
The next RBA meeting is being held on the 4th of February and many analyst previously predicted a further rate cut. However the sentiment is slightly changing as strong employment figures where reported in December.
In the US the USD broke out of a key trend and appears as though we could be seeing a devaluation continue.
There are a number of charts to go through this morning:
AUDUSD Weekly Charts
The weekly charts suggest the current level at 0.6850 is a key support zone, apart from the previous break below in 2019, the only other break lower of this level was during the 08 financial crisis and prior to 2003. This level appears to be a historic support level.
AUDUSD Daily Charts
The AUDUSD has broken out of a strong negative trend and is now back re-testing that support level. Technically there are a number of patterns that suggest this level may hold.
AUDUSD 4 Hour Chart
If this support level holds it will confirm a inverted head and shoulders pattern. This is a bullish signal.
AUDUSD 4 Hour Set Up
Plan here is to enter slightly below the current market price which will minimise draw down.
Trade Set Up: BUY LIMIT – Entry Price 0.6840, stop loss set to 0.6750 and take profit set at 0.6930
We may look to manually close the position prior to the weekend close tomorrow morning at 8am. Keep an eye on your messages and telegram.
Profit : 90 PIPS
Stop loss: 90 PIPS