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Intraday Dollar crosses

Market Analysis
2017-05-05_13-50-19

USDZAR & AUDUSD, H1

April employment data is out shortly and expected at 185k headline that exceeds the 98k headline and March but falls short of February’s 219k bounce. In addition to the jobs report, consumer credit is forecast to increase $14.0 bln from $15.2 bln. Therefore, on the anticipation of US Jobs report today, the US dollar has been trading mixed, falling against the yen and euro while gaining versus commodity currencies.

USDZAR turns oppositely yesterday’s move and rallies back lower to 13.50 area. Hence today South Africa currency looks stronger against US dollar. In the 4 Hour Chart, RSI is at 61 sloping below the overbought territory, while the pair moves below the Upper Bollinger Bands pattern. Meanwhile n the 1 hour chart, pair broke earlier the lower Bollinger Bands pattern, while RSI is at 43. An intraday short position was taken with entry at 13.56. Target 1 was set at 13.47, which is the confluence of 50.0 Fibonacci level. Target 2 was set at 13.40 based on the short term ATR(7). Support at 13.65, which is also the significant 200 Day EMA.

2017-05-05_13-58-15

Aussie on the other hand, is weak against dollar since March 21st. However, in short term timeframes such as hourly once, AUSUSD, seems to continue the downtrend but performing also some correction. More precisely, the pair rallied at 0.7400 from its 0.7366 earlier today, breaking the 20 period EMA in the hourly chart. However now the pair moves again below the 20-period EMA, in two consecutive sessions. The RSI is at 43 sloping down. Hence an entry was taken at 0.7392. Based on ATR (7) Target 1 was set at 0.7370, and by considering also the Fibonacci Channel, Target 2 was set at 0.7350.  Support at 0.7410.

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Andria Pichidi

Market Analyst

HotForex

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