Source: PaxForex Premium Analytics Portal, Technical Insight

Australia's economy has entered a recession phase. According to the Australian Bureau of Statistics (ABS), Australia's GDP fell by 0.3% in the first three months of the year, the first time in 29 years. Household consumption fell 1.1% in the quarter, the first decline since December 2008 and the sharpest in 34 years. The economy has grown by only 1.4 per cent in the last 12 months, the weakest figure since September 2009.

AUD/NZD, 30 min

Pivot: 1.0742

Analysis:

Provided that the currency pair is traded below 1.0770, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.0742
• Take Profit 1: 1.0710
• Take Profit 2: 1.0690

Alternative scenario: 

In case of breakout of the level 1.0770, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.0770
• Take Profit 1: 1.0800
• Take Profit 2: 1.0810

Comment:

RSI is below 50. MACD is below its signal line and negative. The configuration is negative. Moreover, the pair is below its 20 and 50 moving averages (by 1.0759 and 1.0759 respectively).

Key levels:

AUD/NZD, D1

Pivot: 1.0845

Analysis:

While the price is above 1.0630, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 1.0845
• Take Profit 1: 1.1080
• Take Profit 2: 1.1190

Alternative scenario:

If the level 1.0630 is broken-down, follow the recommendations below.

• Time frame: D1
• Recommendation: short position
• Entry point: 1.0630
• Take Profit 1: 1.0440
• Take Profit 2: 1.0330

Comment:

RSI is above 50. MACD is positive and below its signal line. The pair can recover. In addition, the pair trades above its 20 and 50 moving averages (by 1.0726 and 1.0566, respectively). Finally, the AUD/NZD trades above its upper Bollinger Band (standing at 1.0841).

Key levels:

We also advise you to pay attention to the following currency pairs for intra-day trading:

AUD/USD – buy above 0.6915 with 0.7025 and 0.7055 as Take Profit targets. Alternative scenario - if the level of 0.6915 is broken-down, you should consider selling with the targets 0.6880 and 0.6850 as Take Profit.
GBP/USD - long positions above 1.2565 with 1.2660 and 1.2690 targets as Take Profit. Alternative scenario - if the level of 1.2565 is broken-down, sell with the targets 1.2530 and 1.2500 as Take Profit.
USD/CAD – sell below 1.3535 with 1.3465 and 1.3430 targets as Take Profit. Alternative scenario - if the level 1.3535 is broken-out, buy with the TP 1.3570 and 1.3600.