Australia and China had some hot economic data out that worked in favor of Australian currency this morning during the Asian session.
- Chinese economy expanded by 7.3% in Q3 2014 vs. 7.2% forecast
- China’s industrial production up by 8.0% y/y in Sept vs. 7.5% estimate
- Chinese fixed asset investment fell from 16.5% y/y to 16.1% in Sept
- Chinese retail sales picked up by 11.6% y/y vs. 11.8% forecast
- RBA minutes: No surprises. Policymakers simply reiterated that monetary policy is appropriate for the time being and that the prudent course would be to maintain a period of stability in interest rates
- Governor Stevens emphasized that the Australian dollar remains high by historical standards.
Today’s video covers a longer term outlook on AUD/USD, USD/JPY and EUR/USD.
On the technical analysis side and in a longer time overview, Mr. Aussie still has a lot to confirm.
On the daily dance floor, Mr. Aussie continues to bounce up and down like crazy against the US dollar between the 23% Fibonacci level at 0.8851 and the previous bottom at 0.8670. This consolidation is obviously the calm before the storm, and a confirmation below or above the rectangle chart pattern could set the tone for the new trend.
USD/JPY’s pullback was held by Mr. Fibonacci and its legendary 50% retracement level, and we could see more gains towards the 23% Fibonacci level at 107.834. A break below the 50% level at 105.41 could open doors for more drops with 104.320 as first alternative target.
EUR/USD is struggling with a rebound of its own after touching our previous bearish target and key support level at 1.2495, and remains below the Ichimoku cloud. Resistance levels are set at 1.2890 and 1.3100 while resistance levels are set at 1.2495 and 1.2260.
Taking a look at the major events in the forex world in the coming days, Tuesday we could expect some moves in the Australian dollar with the Aussie’s Monetary Policy Meeting Minutes release at 1:30 AM GMT, followed by Australia’s trading buddy, China’s Industrial Production Data at 3:00 AM.
The Aussie shakes could continue on Wednesday with nation’s CPI release at 1:30 AM and as RBA’s Governor, Glenn Stevens speaks at 10:00 PM.
If you liked this video, which I kinda feel that you did, share it with your friends so more people can know that trading can actually be fun and entertaining.
Intraday Forex Technical Levels
GBP/USD 4-hour: Rebounding from the 50% Fibonacci level.
Invest Diva Likes: Short positions below 1.6186 with targets at 1.6114 and 1.6025 in extension.
If Pair Goes Nuts: Above 1.6114 look for further upside towards 1.6186 and 1.6258.
What’s up on the Forex Dance Floor: The pair is rebounding from the 50% Fibonacci level above the Ichimoku’s cloud. The RSI is heading back to the neutrality area.
Supports and Resistances
1.6258
1.6186 Pivot Point
1.6114
1.6025
1.5882
NZD/USD 4-hour: Moving up.
Invest Diva Likes: Long positions above 0.7969 with targets at 0.8131 and 0.8262 in extension.
If Pair Goes Nuts: Below 0.7969 look for further downside towards 0.7911 and 0.7707.
What’s up on the Forex Dance Floor: The pair continues to move up above the Ichimoku’s cloud after reaching the support level at 0.7707. The RSI is above the neutrality area.
Supports and Resistances
0.8262
0.8131
0.7969 Pivot Point
0.7911
0.7707
USD/CAD 4-hour: Teasing the key support level.
Invest Diva Likes: Long positions above 1.1248 with targets at 1.1384 and 1.1445 in extension.
If Pair Goes Nuts: Below 1.1248 look for further downside towards 1.1164 and 1.1097.
What’s up on the Forex Dance Floor: The pair is on an overall uptrend but after pull back it is now consolidating above the 76% Fibonacci level at 1.1248 and slightly above the Ichimoku’s cloud. A break below this key level would signal further drops. The RSI is around the neutrality area.
Supports and Resistances
1.1445
1.1384
1.1248 Pivot Point
1.1164
1.1097
EUR/JPY 4-hour: Consolidating.
Invest Diva Likes: Short positions below 136.83 with targets at 135.80 and 134.13 in extension.
If Pair Goes Nuts: Above 136.834 look for further upside towards 137.67 and 138.50.
What’s up on the Forex Dance Floor: The pair is consolidating below the 38% Fibonacci level at 136.83 and has just entered the Ichimoku’s cloud. The RSI is around the neutrality area.
Supports and Resistances
1.6258
1.6186 Pivot Point
1.6114
1.6025
1.5882
Intraday Commodities Technical Levels
Dow Jones Intraday: capped by a negative trend line.
Invest Diva likes: Short positions below 16195 with targets at 15780 and 15630 in extension.
Alternative scenario: Above 16195 look for further upside with 16390 and 16530 as targets.
Gold Intraday: the upside prevails.
Invest Diva likes: Long positions above 1221.5 with targets at 1250 and 1262 in extension.
Alternative scenario: Below 1221.5 look for further downside with 1215 and 1202 as targets.
Crude Intraday: caution.
Invest Diva likes: Short positions below 83.6 with targets at 81.2 and 79.78 in extension.
Alternative scenario: Above 83.6 look for further upside with 84.83 and 86.3 as targets.
#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.
