As we look to the economical data coming ahead, this week would be the inflation index focus, giving more idea of the inflation target will be achieved.
Not to mentioned that last week, we suggested a LONG position for AUDUSD and NZDUSD and both missed entry point by a few pips only to see them heading towards our targetted profit area. Nevertheless, we continue our journey and this week, given that they have made some correction position, we are looking to enter upon good price and a SHORT is preferred.
Here’s the analysis: FX Analysis – 18AUG14 – AUD
As the AUDSD proceed towards 100SMAs resistance, we look at 0.9330 as the key resistance (key support previously). Taking that a short correction was made from 0.9238 up to 0.9330 (surpassing both targetted profit), 0.9330 remained strong resistance that we would want to see if the AUDUSD will trade higher than that. We do see that there’s price action and indicators divergence and a short position is preferred.
NZDUSD analysis: FX Analysis – 18AUG14 – NZD
Last week, we were expecting a correction on NZDUSD after falling for 4 consecutive weeks and our entry point were missed by a few pips and targetted profit missed by a few pips as well. This week, as we looked to daily chart, we noticed the re-test of the trendline once again (although we should not fail to notice of reversal signal on key support @ 0.8400) before fall below 0.8400 level.
At this level, we are looking/waiting for NZDUSD to hit upon 38.2% (0.8560) or 50% (0.8620) retracement. Currently it’s at 23.6% retracement and looking at 0.8530 as the next resistance.
In my opinion, I do think that NZDUSD will not last any higher than 0.8530 and a SHORT position is preferred.
There will be a few key speakers starting from RBA Gov Stevens on Wednesday followed by FOMC Meeting Minutes and Yellen speeech on Friday and ending with Draghi’s speech on Saturday at Jackson Hole Symposium. On top of that, EUR’s PMI, China PMI, Canada CPI etc, are all coming up.
Stay tuned with more updates.
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