Weekend China Data Disappoints: Trading Major Aussie Levels:
“CNY Industrial Production y/y (6.0% v 6.5% expected)”
Chinese Industrial Production numbers continue to trend downward, missing this month’s 6.5% expectation with a concerning 6.0% print.
With a weekend Chinese data dump missing expectations, concerns about the effectiveness of government stimulus in the planned economy will again to come to the fore for Forex traders.
But with the Aussie Dollar rallying at the open, Forex markets are once again showing just how important major technical levels are, even in the face of fundamental uncertainty.
The static, zoomed out AUD/USD weekly chart from the Vantage FX MT4 platform highlights why:
To make it clearer, back in December 2015 I posted this AUD/USD weekly chart on TradingView. I published it here because the major weekly trend line in question was looking like it was going to be in play for some time.
Well 6 months later and we’re still looking at the level. Click the ‘play button’ on the chart inside that link and make sure that level is on your chart!
The hourly shows the buyers noting the level to start the week and hitting the bid. We have already filled the small China data miss induced gap and I can’t help but be tempted to buy any re-activation of the weekly trend line at the hourly level.
Chart of the Day:
Keeping with the Aussie Dollar theme, I shared this AUD/NZD daily chart out to Twitter on Friday afternoon.
As you can see, price was sitting at a confluence of short term support, while in the midst of a longer term bullish channel.
Looking at it in the context of AUD/USD also sitting at major weekly support, there was a definite case for having the guts to jump in front of the train on this one, and the Monday morning buyers are looking to have justified your decision if you did.
On the Calendar Monday:
CHF Bank Holiday
EUR French Bank Holiday
EUR German Bank Holiday
“Banks will be closed in observance of Whit Monday. Whit Monday or Pentecost Monday (also known as Monday of the Holy Spirit) is the holiday celebrated the day after Pentecost, a moveable feast in the Christian calendar. It is moveable because it is determined by the date of Easter.”
Keep an eye on the @VantageFX Twitter account as we look to share some possible intra-day buy levels on the Aussie Dollar pairs that fit in with the narrative above. Trade with leading ECN Forex Broker, Vantage FX by taking advantage of levels on your own live Forex account.
Dane Williams – @VantageFX
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