AUDNZD Trading Setup
Last week was big for two reasons- FOMC on Wednesday and NFP on Friday. Job growth came in below expectations- just enough to erase the chances of a September rate hike. Following the data, the US Dollar weakened against all major currency pairs.
by: Colibri Trader
The trading signal from last Thursday was ahead of the NFP report. I suggested that you stay away (unless willing to take the risk of trading during NFP). At the same time, price action was indicating a long trade on GOLD. As it happened, GOLD shot up a lot just after the NFP data. Whether you traded it or not- price action has once again proven that it can resist events like that and be an effective bellwether in trading. For those of you who are long GOLD there is no reason to take money off the table. For me it looks very bullish and there is a huge potential for more profits to be made. The next level that GOLD can reach up to is 1370.
Today’s trading setup is coming from an unconventional pair. At least, I have never covered this pair in my reports. It is the AUDNZD. Not a lot of traders that I know are trading this pair, but now it looks like an opportunity is presenting itself. As you can see from the screenshot, the pair has reached a multi-month support level. It looks like hesitation is building up, which could potentially lead to buyers coming in. The daily candle from Friday is a long-legged doji. I am looking to possibly enter in a long trade if the price goes a bit lower. So, 1.0355 looks to me as an ideal entry level for a long trade. The stop should be placed just under 1.0300. My first target will be 1.0500. From then on, it will depend on price action. It looks to me that this could lead to the establishment of a big uptrend.