Over the past week, we observed two bullish formations which took place on a daily chart. Besides forming 2 bullish formations, we observed bearish signals as well but the first bearish signal was broken to the upside hence we invalidate that. AUDUSD should have the potential to push up to 0.788, failing to move higher we will look to support at 0.764 and 0.757.
Market news before trading week begins:
- Corruption probes in Saudi Arabia have led to detentions of prominent figures which include princes and ministers.
- Oil minister has indicated that more work has to be done to bring down global oil inventories.
- NY Fed president William Dudley to announce his retirement.
- US unemployment has fallen to 17 year low of 4.1% but worker paychecks face a weak growth.
- Jerome Powell, the new Fed Chief.
- With the new fed chief, there should not be a huge policy change going forward.
- Change in non farm payroll (Actual: 261k Expected: 313k Previous: 18k )
- US unemployment rate for Oct (Actual: 4.1% Expected: 4.2% Previous: 4.2% )
- Trump: There will likely be tax cuts by Christmas
- US rate hike will likely be in Dec 2017.
- Canadian unemployment for Oct (Actual: 6.3% Expected: 6.2% Previous: 6.2% )
- Canadian net change in employment for Oct (Actual: 35.3k Expected: 15.0k Previous: 10.0k )
- BOE has gone ahead with historical rate hike to 0.5%
- Carney: UK economy is seeing more balanced growth
- Carney: Brexit is the biggest determinant of economic outlook.
- Carney: Domestic CPI is likely to build in coming years.
- BOE: Future rate hikes will be limited and gradual
- Weaker than expected retail data
BOE rate meeting is expected to take place. Key indicators are predicting that BOE will raise rates.
BOC's Poloz indicated that CAD strength has been due to rate expectation, a downward revision of growth expectations should bring CAD lower.
Bitcoin is pushing new high.
Japanese consumer confidence comes in slightly better than expected
Actual: 44.5 Expected: 43.6 Previous: 43.9
Fed Chairman nominee will be announced later today
Jerome Powell is most likely to be the Fed Chairman, according to sources familiar.
Fed signals rate hike on Dec is still on track
US labour market continued to strength with unemployment declined.
FOMC rate decision actual (lower bound): 1%, (upper bound): 1%
Australia trade balance beats expectations in Sep
% of traders at net long is at its lowest at the moment.
% of traders at net long is at its lowest at the moment
We are bullish on AUDUSD, currently in the money with 50pips. Our bias will be invalidated when price breaches below 0.76156.
This order was entered on a 1h perspective with the use of 4h chart serving as potential resistance, which is also where the take profit is. Take profit is aimed at 40pips with stop loss kept at 20pips, offering a risk reward of 2 times,
AUDCHF faces triple top resistance at around 0.77 level on 4h chart. With a lower low and lower high formation formed on 4h chart, we look to take a short position with target at 0.758. Our bias will be invalidated if price moves above 0.772.
The future belongs to those who believe in the beauty of their dreams.