Forex Marketz Daily Forex News – Fully Markets Update
AUD/USD (0.7137)
Points to consider in this market:
- Aussie Dollar continues its recovery. Prices at three week high.
- The overall downtrend remains bearish. Looking for the correction higher to lose steam.
- Trade strategy: Stand aside
The AUD/USD Forex market has been moving higher and prices are now at a three week high. If you note the below AUD/USD daily MT 4 chart, you will see that price action is now near a critical trend line resistance. The dominant bias in this market remains quite bearish and this move higher is a correction. Especially below this trend line resistance level.
Technical Analysis
Let’s talk about today’s AUD/USD technical analysis. There is near term resistance reinforced by the aforementioned trend line. This technical level is lining up at 0.7135. A daily close above this technical level challenges the next upside barrier lining up at 0.7210. The alternative AUD/USD technical analysis, should the Aussie Dollar move lower, notes technical support at 0.7078. This is also a former resistance level. A break below this technical support challenges the next downside barrier at 0.7018.
Trade Strategy
Let’s now talk about today’s AUD/USD trade strategy which includes fundamentals as well as technical analysis. Fundamentals, mainly thanks to the Reserve Bank of Australia (RBA), soft economic data from China and continued softness in Australia’s data, keeps the bearish outlook on the Australian Dollar. This is simply a correction that should peter out. Technically speaking, the latest break of technical resistance does suggest more gains. For now, I will opt to stand aside and wait for this correction higher to burn out. Today, I am flat in the AUD/USD Forex market.
Keep in mind that the RBA prefers a weak Aussie Dollar. Especially in light of soft exports to China as their economy is slowing down and they need less raw materials. China is Australia’s largest trading partner and importer of raw goods.
