Daily Forex technical analysis & trade opportunities


The following is Daily AUDUSD, NZDUSD and USDCAD Forex technical analysis which include FX trade opportunities, technical support & resistance levels, and best risk/reward Forex setups.

12 October, AtoZForex – As we have approached the middle of the week, we will look into daily technical analysis for AUDUSD, NZDUSD, and USDCAD to reassess the outlook from this week’s Forex technical analysis.

Daily USDCAD technical analysis

The rebound in USDCAD from Fibonacci 0% retracement level at 1.33 was stronger than expected and our support level at 1.325 was broken.

Daily Forex technical analysis & trade opportunities USDCAD daily Forex technical analysis (click to zoom in)

Nonetheless, the trend for USDCAD remains bullish and targets are set at 1.330, major weekly resistance level at 1.335, and at 1.339 custom -10% Fibonacci zone at, just ahead of 1.400 psychological level.

The best risk/reward Forex trade opportunity was at a psychological 1.320. Although a retest of the level is still possible in an immediate aftermath of today’s FOMC minutes, we should look for other opportunities.

Daily AUDUSD technical analysis

Looking at daily AUDUSD technical analysis, the pair has successfully reached our first and second targets at 0.7565 and 0.758 respectively from the 0.7535 support using half of the usual entry size.

Daily Forex technical analysis & trade opportunities AUDNZD daily Forex technical analysis (click to zoom in)

At the moment, technical indicators divergence and contradict one another, something we could expect as the pair nears the end of narrowing triangle. Therefore, a clear direction could not be determined and we should wait for the pair to approach the boundary trend lines from where new trade opportunities would emerge.

In the meantime, traders might benefit by trading with ranging indicators or oscillators.

Daily NZDUSD technical analysis

Lastly, looking at technical analysis for New Zealand Dollar, US Dollar, the pair failed to approached the major 0.722 resistance level for us to use it as an opportunity to short since the ongoing downtrend proved to be too strong. Although an underlying trend remains to the upside, this warns of deeper correction towards Fibonacci 61.8% retracement level at 0.697.

Daily Forex technical analysis & trade opportunities NZDUSD daily Forex technical analysis (click to zoom in)

But before we get there, we could use a major support area just above 0.700 as an opportunity to long NZDUSD towards 0.7045.

Fed rate hike in December?

Meanwhile from fundamental perspective, Fed New York President Bill Dudley has reiterated Janet Yellen’s message on Wednesday when speaking in front of a business council gathering saying that Fed can gently hike rates and therefore implying a December Fed interest rate hike.

The Fed speaker added that the US inflation projections are “well-anchored, along with the “slack” in the US labor markets are the main reasons why the Federal Reserve can gradually hike rates.

The news have supported the USD ahead of September FOMC meeting minutes as investors priced in higher odds for December Fed rate hike. Nonetheless, the minutes scheduled Wednesday 19:00 BST should reveal a bigger picture and therefore will be more important. We will be covering FOMC minutes in less than an hour’s time.

Also see: Factors that can drive Gold to all-time high in 2018

Think we missed something? Let us know in the comments section below.

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