We can expect a volatile day today with the release of ADP Non Farm Employment Change later in the North American session along with some heavy hitting data from NZD and GBP earlier in the day.
Once again for the day we carry interest on the crosses along with AUD/USD been the only USD major pair for the day and like to see they getting play out to expectation.
EUR/AUD
We are interested to try buys off T3 zone upon its test and a hold for an initial move to around 4800 handle with potential run to 487X.
The pair was hit hard yesterday with RBA statement causing the big surge on the AUD when RBA Governor Steven failed to mentioned that more weakness on the AUD is preferred along with better than expected data earlier in the Asia session. I won’t say the overall move didn’t surprise me; for it very well did. If there is further extension coming up on the AUD or euro end up falling under 1086X support; we likely can see more downfall on the EUR/AUD to make it test 469X and if holds to here we likely to initiate longs.
Hence; if we get the longs triggered on condition mentioned will like to see it making to 4800 level as initial soft target with 487X better option if can get to play out.
T3 zone looks decent to try longs if gets a test and shows an initial hold.
GBP/NZD
Pretty much we looking on same line as yesterday with break higher to T4 to initiate longs for a possible test of T3 zone and to try shorts off T3 for an initial retest back to the break point or T4 test.
NZD has an early Asia data release on employment numbers and it is likely to cause some big movement and would like to see if can long the break of T4 for a run to 2.396X only to shift gears onr taking shorts preferably off 2.396X-7X zone.
T3 test and a hold prefer to short the pair.
AUD/USD
I have already mentioned on the EUR/AUD analysis; what happened with AUD yesterday. Going forward, 737X comes in as a support which was a decent resistance earlier on the rallies. The other break point is the dotted trend line T4 which looks like a break out of the channel.
If we can break and close under T3; can attempt shorts for an initial test to T4 and need a further break under for a meatier fall on the pair. The pair can very well bounce off T4 or even T3 support and considering we test T4 and then end up closing higher to T3; can consider going long for a 746X possible target. If aggressive can look to long off T4 test or 733X zone in anticipation that we will break back higher to T3 and close above it.
733X supp to hold for push higher else can expect falling out on the pair.