Will AUD/NZD Hold Its Ground? Upcoming Wage and Job Data Could Tell
14 May 2024
In the forex landscape, the AUD/NZD pair presents a unique opportunity for analysis as it stands on the brink of potential volatility. From a technical standpoint, the price is testing two critical support levels: a long-term uptrend line depicted in green and a horizontal support at 1.095 marked in yellow. These pivotal points are crucial as a breach below them could signal a strong sell opportunity, potentially aiming for the 38.2% Fibonacci retracement level, which aligns with the lows observed in March and April of this year.
The upcoming economic data from Australia could catalyze significant price movements. The Wage Price Index scheduled for release tomorrow and the employment data on Thursday are likely to influence market sentiment and price dynamics. Depending on the outcomes, these data points could either validate the support levels, offering a buy signal if the price rebounds, or confirm the breakdown if the price closes below these supports today, enhancing the bearish outlook.
As traders monitor these developments, the decision-making will hinge on these technical and fundamental indicators. The AUD/NZD pair, though often less spotlighted, now demands attention due to these impending economic updates and their potential to disrupt the current sideways trading pattern.