Forex Marketz Daily Forex News – Fully Markets Update
AUD/USD (0.7129)
Three points to consider
- Australian Dollar drops the most in one day in three years
- Short Trade now in play. Target is below 0.71
- Trade Strategy: Short at 0.7215
The AUD/USD Forex market is now back under selling pressure. The Australian Dollar lost the most in one day that it has seen in nearly four years. The Australian Dollar is typically sensitive to market sentiment but has been slow to react to the risk aversion that has gripped the global financial markets. We now have that response that is feeding off the Reserve Bank of Australia (RBA) need for a weak national currency. Please refer to the below AUD/USD daily MT 4 chart for today’s technical analysis.
Technical Analysis
Let’s now discuss today’s AUD/USD daily technical analysis. The AUD has finally broken the strong range support located near the 0.72 pivot. There is technical support lining up at 0.7085. A daily close below this level challenges the next technical support lining up at 0.6975. The alternative AUD/USD technical analysis, should the Australian Dollar reverse, thus support his Forex market, notes near term technical resistance lining up at 0.7220. A break above this level challenges the next technical resistance lining up at 0.7302/03.
Trade Strategy
Let’s now discuss today’s AUD/USD trade strategy. I have now entered a short trade, it went active at 0.7215. The first target is at 07085. I have a stop loss set to go active should the Australian Dollar climb above 0.7302. I will move this stop loss to break even after booking 50 percent of the profits of this trade.
There is not a lot of event risk on today’s economic calendar that would affect price volatility. Later this afternoon the United States will release its durable goods orders, expected to come in at -0.4 percent. I will monitor that release. There are some other reports out of the United States but that is the one to watch for today.
