Asian Session Morning: Market Chop And FIFA Sting

Asian Session Morning:
Good morning traders. A fairly quiet one overnight, with no major market moving data releases seeing forex markets chopping about for the day and basically ending where they began.

“It’s only just beginning.”

The big news yesterday, while not being market related, was the raids on Football’s governing body, FIFA. If you’re a global citizen, then you should be able to at least see the potential political power for good that FIFA has, and if you’re a football fan, then you understand how fundamentally wrong the organisation conducts itself.

This is just the start, but 9 FIFA officials were arrested on suspicion of receiving bribes totalling $100m (£65m). President Sepp Blatter was not among the accused, but he has overseen this whole shambles, so surely it can only be a matter of time. Change is coming.

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On the Calendar Today:
Fairly straight forward on the calendar today, with only the 1 major data release coming from each of the 3 major sessions.

Thursday:
AUD Private Capital Expenditure

USD G7 Meetings
GBP Second Estimate GDP
USD Unemployment Claims

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Chart of the Day:
It feels like an eternity ago that we were talking about AUD/NZD below parity. Let’s have a look at where we sit now.

AUD/NZD Weekly:

Click on chart to see a larger view.

On the Weekly, as you can see, price put in big bullish candles 4 weeks in a row but stalled at trend line resistance. We got a nice little rejection off this level and have now come back down to the horizontal zone that has been tested a few times over the last few years and could now be re-activated.

AUD/NZD Daily:

Click on chart to see a larger view.

This horizontal zone lines up perfectly with previously broken daily channel resistance that could now also be acting as support. Anywhere that you get a confluence of levels such as this is worth taking note of.