AUD / USD and NZD / USD are on the rise to start the new trading week, but I think we might have a quieter week ahead.
Both pairs look very bullish on the charts and I think it could be the Aussie who is doing the best at the moment.
It has been an interesting time for risky trading, as the weakness of the USD was a big driver. Of course, with the news about vaccines over the past fortnight, that only added to the positive mood.
In terms of data this week, we expect a calm week. It’s Thanksgiving in the US and that means traders will start to calm down around the middle of the week. Likewise, the calendar is already empty of a lot of big data, so it could be a quiet ending.
Having said that, if the markets come out very early, don’t be shocked. We often see early deals and that could cause some volatility on Monday and Tuesday.
As mentioned, the AUD / USD and NZD / USD seem strong at the moment, but I suspect the AUD might be ready to burst.
Just look at the charts and we can see a series of higher lows. What this tells me is that the price is going up with each withdrawal and this is normally a sign of strength.
As we know the price has not been able to break through the 0.7320-40 range at all and has been going on for several weeks now.
Considering how things develop, I will prepare for an attempt at this level and a possible break. We don’t know if a move will hold, especially given the shortened week, but a trade could be the test with a target to cover on the other side.