U.S. Late Session/Overnight Forex Preview-AUD/USD In Focus

For a Wednesday session, today has been fairly productive. Winning trade signals on the USD/CAD and the NZD/USD have highlighted a good day for followers. We are looking for more of the same in the coming hours, as the forex is poised to open up as the week nears its conclusion.

Here are the important news items for the U.S. overnight and pre-Thursday session hours:

Country                       Event

Australia                      Employment Situation

United Kingdom          Retail Sales

European Union          Eurozone CPI

United States              Jobless Claims

The market movers of this group will be the Australian employment data and the Eurozone CPI. If you are holding open positions during these releases, be sure to practice aggressive risk management.

AUD/USD Technicals

My colleague Skerdian spotted a great shorting opportunity earlier in the session and it has performed well. The AUD/USD is firmly in control of the bears, trading near intraday lows.

AUD/USD, Daily Chart

As you can see on the daily chart, price has finally extended beneath the 38% yearly retracement and broke the pronounced “L” formation. This is a good development and one that will spur future opportunities.

Overview: The 50% retracement of 2017’s range (.7475) is a key macro support level. With a bit of luck, it will come into play later this week on sustained bearish action. For now, it remains on the distant horizon.

Australia’s employment reports have the potential to shake up this market during the early Thursday forex session. In the event that a monumental surprise comes to pass, I will be taking longs from .7475 in anticipation of a retracement back towards .7500.

As always, trade smart and for tomorrow!