Daily Forex AUD/USD Analysis

CupO’Forex Daily Forex Technical Analysis – September 2, 2014

Yesterday, we spoke about the slowing Chinese economic data as well as the continuing stagnating EU economic data leading to possible deflation. Today we will discuss the economic data from the US as well as the RBA interest rate decision. The US has key data with the ISM manufacturing data coming out this afternoon. While we expect this number to come in below the last print, we hope to meet or exceed expectations as US data has been firming.
Earlier today, the RBA will release its rate decision. We expect them to stand pat on its key rate and monetary policy. We will be listening to the remarks after the meeting for a clearer picture where the RBA feels the economy and Aussie dollar is heading.

S&P 500: We are stalling just above 2000. We had been so excited to break this key technical level and now we are stalling. There is quite a bit of hesitation as we are range trading. We are butting heads against 2005.50/2006.50. A move above 2006.50 opens the level at 2015 up. Note the dojis as the market is hesitating waiting on economic data to be released today and this week. Also, news out of the Ukraine will effect this market.
EUR/USD: we continue to fall here. As he EU economy is faltering and slows to possible deflation, the US is strengthening supporting the US dollar. Watch the key technical level at 1.31. A close below that is very bearish. At this point we need a close above 1.3250 to signal a reversal and possible bottom in place.
Part 3
AUD/USD: we have been range trading here around the key technical level at 0.9250. Note the bearish engulfing candlestick near 0.9350. A move below 0.9310 targets 0.9270. A break above 0.9370 will target 0.9400.
Light sweet crude: as expected, prices broke higher. We are above 93.60. A break above 96.50 could target the round level of 100. Support lines up at 93.50.

THANK YOU AND HAVE A GREAT DAY TRADING!