NZDUSD Breakout, AUD’s Update Before ‘Super Thursday’
NZDUSD broke out an old high at 0.705 last week. Since then, it has been showing weak action seen by the stalling prices and high volume, and today, a low volume rally to the breakout’s price. Until something changes, I’m assuming the smart money isn’t interested in higher prices given the past action. FOMC is making a press conference today at 6pm GMT, and tomorrow at 12:30am GMT, US Unemployment claims and CPI reports are being released. Between the two, there might be an opportunity to trade NZDUSD on a small timeframe, such as M15, especially if FOMC press conference is bearish for the Dollar, which would make the prices more attractive to short.
In the last post, I analyzed AUDUSD and AUDJPY. In AUDUSD I noted that a correction would be necessary after such a movement, and would provide a buying opportunity. It showed up last night at midnight GMT in H4. More opportunities might show up today if there is a reaction to the downside. AUDJPY bounced off a previous low on high volume, meaning there was a shake-out in the market (stop hunting). Likewise, a down reaction can provide another buying opportunity.
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