Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
Be Ready to Sell AUD
2021-07-30 • Updated
What is happening?
The Reserve Bank of Australia will hold a meeting on August 3. Analysts believe the bank may increase its quantitative easing program, while other banks are lowering their bond buys or discussing this decision.
Australia is poorly coping with the new Covid-19 wave. Sydney's current lockdown is expected to end on August 28 and there are some rumors that it might be extended. Five weeks of lockdown haven’t helped – infections continue to spread.
What to expect?
Westpac, an Australian bank, claimed that the RBA may lift the purchase pace from 5 billion Australian dollars to 6 billion. If the bank increases asset purchases, it may surprise the markets and send the AUD down.
The AUD has already weakened. It has dropped against all major peers in July! Just look at the chart.
AUD/USD is forecasted at 0.73 at the end of 2021 by Wells Fargo, 0.74 by the end of March 2022, 0.75 by the end of June 2022, and 0.76 by the end of September.
AUD/USD is moving inside the descending channel. However, it has been stuck in a range between 0.7340 and 0.7400 since July 21. It’s touching the upper trend line now, therefore the pair is likely to reverse down. If it drops below the 0.7340 support level, it may fall to the low of July 20 at 0.7300. Resistance levels are high of July 29 at 0.7400 and the next round number of 0.7450.
After multiple hawkish remarks over the past few days from non-voters members, the Federal Reserve chairman Powell surprised the markets with some dovish remarks…
Institutional investors speak about further growth in the stock market. In the exact market that has doubled since COVID-19 and doesn’t plan to stop. Is it possible?
US stock market corrects, gold recovers and the crypto market drops hard! Best trade opportunities during this week in the article! Let’s check the charts and set some goals! NASDAQ (US100) US100 index plunges as the US dollar strengthens…
The US broad-market index, S&P 500, has been pressed below the 50-day moving average for the first time since March! Why?
GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.