Technical data of the currency pair:
Previous closing: 0.7157;
Daily range: 0,7094-0,7162;
Opening: 0.7157; 52- week range: 0.6824-0.8168;
Annual revenue: -8.72%;
Change in % for the previous day: -0.49.
- In the past four trading session the Australian dollar has been trading in the range of 0.7085-0.71850.7085-0.7185. The currency hardly responded to the US macro-economic data;
- U.S. producer price index on Wednesday, showed the rise of 0.1% which was above analysts’ forecast.
- According to the US Labor Department, over a week, a number of initial applications for unemployment benefits fell by 2.6% up to 262000.
- The Australian dollar is a commodity currency. Australia is an export-dependant country, which sells commodities in the foreign markets (gold, iron ore, oilу etc.). Yesterday, US Energy Information Administration (EIA) reported that inventories of the crude oil have grown by 2.1 million barrels, which increased investors’ concern about the decrease in demand for oil.
- “Commitments of Traders” showed the decline in long positions by 21819, up to 37697. A number of short positions have increased by 6033 contracts.
- At yesterday’s trading session the AUD dropped by 0.49% against the USD. Positive American statistics, slowdown of the global economy, decline in demand for oil have a negative impact on the currency pair. According to “COT” large speculators have increased the number of short positions.
- In the near future the AUD will weaken versus the USD. It is recommended to open short positions.
Trading tips for the currency pair AUD/USD
Medium-term trading: at the moment, the currency is traded between the local support and resistance levels of 0.7090/0.7130. After breaking down and testing of the level 0.7090 and in case of respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is less than 2% of capital. Stop-order can be placed slightly above the signal line. Take profit should be placed in parts at the levels of 0.7050, 0.7010 and 0.6950 with the use of trailing stop.
Short-term trading: currently, the pair is traded in the range of 0.7090-0.71200.7090-0.7120. We recommend to enter the market after breaking down and testing these levels. The positions can be opened near the signal line, close to support/resistance levels. Risk per trade is less than 2.5% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.