Analytical Review of the Currency Pair AUD/USD
Technical data of the currency pair:
Previous closing: 0.7725;
Daily range: 0.7631-0.7676;
Opening: 0.7658;
52- week range: 0.6824-0.8168;
Annual revenue: -1.61%;
Change in % for the previous day: +0.35.
Analytical review:
- Last week the AUD rose by over 150 points against the USD. During the session last Friday the rally in the AUD was stopped at the local resistance level of 0.7730.
- Important Australian statistics released last week showed that the number of employed in the country in March has grown by 26100 against expectations of 20000.
- China is an important strategic partner of Australia. Volume of industrial output in China rose to 6.8% against market expectations of 5.9%.
- “Commitments of Traders” shows the decline in long positions by 1215 contracts up to 20005. 63456 contracts have been opened for short positions.
- This week, the following US data will be released: construction permits (Tuesday), oil inventories (Tuesday), sales in the secondary housing market (Wednesday). This data may change dynamics in the pair and affect market volatility.
Summary:
- Positive Australian economic statistics, the increase in Chinese market sentiments, increased volatility in the financial markets put significant pressure on the currency pair.
- Demand for the AUD is supported by positive dynamics of oil prices.
- According to “COT large investors have increased short positions.
- In the near future the AUD may rise against the USD. It is recommended to open long positions.
Trading tips for the currency pair AUD/USD
Medium-term trading: At the moment the currency is traded in the range of 0,7625-0,7685. After breaking out and testing of the upper limit of the range (0.7685) and in case of the respective confirmation (such as Price Action pattern) it is recommended to open long positions. Risk per trade is not more 2% of capital. Stop loss can be placed below the signal line. Take profit can be placed in parts at the levels of 0.7725, 0.7790 and 0.7840 with the use of trailing stops.
Short-term trading: at the opening of the trading session there was a gap down on the market (over 65 points). At the moment, on the chart with the timeframe 15M the currency is traded near the local resistance level of 0.7675. After breaking down and testing of this level, it is advisable to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed at the level of 0.7660. Take profit can be placed in parts at the levels of of 0.7695, 0.7715 and 0.7730 with the use of trailing stops.
