(By Eugene Voon)
This week’s Australian economic news looks at Employment change and Unemployment rate which will be released on Thursday, 18th June.
Last week, two of Australia’s largest states announced easing of lock down restrictions. Employment related announcements came in worse than expected. Caution to traders the AUD related pairs during the hours leading up to the news that would generate a sudden volatility.
AUDUSD Daily Chart
Over the past week, price hovered above the Bearish Bat reversal zone. On top of that the daily chart formed an RSI Bearish Divergence. The pair fell and now hovering at the PRZ. At the moment it is still possible to take a short position. However, traders may want to hold on and see if the reversal zone ends up being a new supply zone.
AUDUSD H1 Chart
Based on the AUDUSD H1 chart, we see a potential pull back before price moves lower as there is a smaller Bearish Bat close to the Daily Reversal Zone. Traders who are not yet in the trade may wish to wait for this before entering at the better price rather that rushing in on Monday morning.
AUDJPY H4 Chart
The AUDJPY moved lower as expected. A Head and Shoulders formed and confirmed the Reversal move complimented by the Bearish Divergence on the RSI. Price has already moved away from the top, we could be looking at a start of a new downtrend. Traders should be looking for a bearish continuation move, spotted a potential Bearish Bat pattern forming.
GBPAUD Daily Chart
Last week, GBPAUD did a slight pull back before the big bearish bar on Friday. The pattern has not yet completed and traders will have to wait longer for price to move to the reversal zone.
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