Forex Marketz Daily Forex News – Fully Markets Update
Points to consider in this Aussie Dollar Forex market:
- The Aussie Dollar is digesting after hitting a 5 month high against the US Dollar.
- Waiting for this Forex market to break below trend line support to align with fundamentals.
- Trade strategy: Stand aside
The AUD/USD Forex market is digesting gains after a four month high. The break higher broke a double top in place since late June. This means the recovery from the May low could now be challenging the April top near 0.78. However, fundamentals do not support this even as the Australian jobs report came out better than expected.
Aussie Dollar Technical Analysis
Let’s talk about today’s AUD/USD daily technical analysis. The August 11 high at 0.7760 is the first layer on the upside. A daily close above this technical level challenges the April 21 high peak at 0.7835. The alternative Aussie analysis, notes the first downside barrier, former resistance, at 0.7630. A break below this first downside barrier challenges the rising trend line that lines up at 0.7565 for today.
Trade Strategy
There is possible long AUD trade, at least positioning agues in favor of this. However, the fundamentals do not agree with that trade now. There is a disparity between technical positioning and fundamentals and a daily close below the rising trend line is needed to fix this. For now, I will opt to stand aside and remain flat in the AUD/USD Forex market.
Even with a stronger than expected jobs print this morning, the fundamentals and outlook with the Australian Dollar still point to a bearish outlook for 2016 and the foreseeable future.
