AUDUSD right on major support, time to start buying
Buy above 0.7577. Stop loss at 0.7556. Take profit at 0.7642.
Reason for the trading strategy (technically):
Price is now right on our buying area. We prepare to buy above 0.7577 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support) for a bounce up to at least 0.7642 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing a nice bounce above 4% with good upside potential.
Reason for the trading strategy (fundamentally):
It’s too tricky to call a move on NFP this month as there are too many mixed signals. Arguments for stronger payrolls include Challenger job cuts, employment component of manufacturing ISM rising, consumer confidence rising to 118.9. However, there is also strong arguments for weaker payrolls with Employment Component of Non-Manufacturing ISM dropping to 55.8 from 57.8, ADP Employment Falls to Lowest Level Since October, 4 Week Jobless Claims Average Rises to 243K from 239K, Continuing Claims Rises to 1.956M from 1.929M and University of Michigan Index Drops to 95.1 from 97.1. We lean slightly closer to USD weakness which means it is in line with our rise in AUDUSD.
Reason for the trading strategy (technically):
Price is now right on our buying area. We prepare to buy above 0.7577 support (Fibonacci retracement, Fibonacci extension, horizontal swing low support) for a bounce up to at least 0.7642 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (34,5,3) is seeing a nice bounce above 4% with good upside potential.
Reason for the trading strategy (fundamentally):
It’s too tricky to call a move on NFP this month as there are too many mixed signals. Arguments for stronger payrolls include Challenger job cuts, employment component of manufacturing ISM rising, consumer confidence rising to 118.9. However, there is also strong arguments for weaker payrolls with Employment Component of Non-Manufacturing ISM dropping to 55.8 from 57.8, ADP Employment Falls to Lowest Level Since October, 4 Week Jobless Claims Average Rises to 243K from 239K, Continuing Claims Rises to 1.956M from 1.929M and University of Michigan Index Drops to 95.1 from 97.1. We lean slightly closer to USD weakness which means it is in line with our rise in AUDUSD.