Yesterday’s US inflation data did not cause much change in the forex market. US inflation turned out to be slightly lower than the expected 3%, at 2.9 y/y. After momentary movements in both directions, another weakening of the USD is on the way today.
This morning we learned data from the labor market in Australia, which turned out to be much better than expected. The latest data showed that 58,200 new workers were added, which is nearly three times the expected 20,000. The projected inflation rate for August was also reported and is expected to be 4.5%, higher than the expected 4.3%.
The good condition of the labor market and higher-than-expected inflation leads to the conclusion that the RBA will find no reason to cut interest rates, and may even raise them at its upcoming meeting.
This caused a strong upward impulse on AUDUSD this morning, and on other pairs such as AUDNZD and even EURAUD ( 130p downward candle).
AUDUSD technical analysis
A bullish engulfing formation appeared on the H4 chart after today’s good data from the Australian labor market. An upward breakout from this formation may initiate an upward swing and the price will head north to the region of the supply zone located at 0.6760.
On the weekly chart, we notice the symmetrical triangle. The previous week formed a bullish engulfing formation, and the current week indicates an upward breakout from this formation. The target may turn out to be the resistance of this triangle, where there is also a supply zone.
LIVE EDUCATION: Here you will find schedule of my live sessions:
Links: BASIC (beginners room) ADVANCED ROOM
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions, which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo
