Technical data of the currency pair:
Previous closing: 0.7468; Daily range: 0.7416-0.7473;
Opening: 0.7468; 52- week range: 0.6824-0.8168;
Annual revenue: -3.46%; Change in % for the previous day: +0.68.
- Since the beginning of the month the AUD has significantly strengthened against the USD (over 300 points). During yesterday’s trading session the currency rose by 0.68%;
- Last week, important Australian statistics was released. According to Statistical Department of Australia GDP for Q4 rose by 0.6%, exceeding analysts’ forecast of 0.4%. Trade balance deficit in January fell to 2.937 billion AUD. Analysts expected the reduction of 3.100 billion AUD;
- The AUD is a commodity currency. Further rise in the currency can be triggered by favourable situation in the commodity markets. The price of oil has grown above 36 USD per barrel for the first time in the past two months;
- “Commitments of Traders’ showed the increase in the long positions up to 33953 contracts;
- This week the following data will become known: US oil reserves (on Wednesday 9 March 2016), consumer price index of Chine (on Thursday 10 March 2016). This news can influence on the dynamics and volatility in the market.
- Positive data on Australian economy, probability of correction in the commodity market and low expectation of the interest rate increase in the USA provide support to the AUD. According to “COT” large speculators believe in strength of the Australian dollar
- In the near future the AUD is likely to strengthen against the USD. We recommend to open long positions.
Trading tips for the currency pair AUD/USD
Long-term trading: by now the currency has broken down strong resistance level of 0.7380. If the mirrored support level of 0.7380 is maintained and in case of respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Risk per trade is more than 2% of capital. Stop-order can be placed below the signal line. Take profit should be placed in parts at the levels of .7500, 0.7610 and 0.7780 with the use of trailing stop.
Medium-term trading: At the moment the currency is traded between the local support and resistance levels of 0.7395 – 0.7440. We recommend to enter the market after breaking down and testing these levels. The positions can be opened near the signal line, and the nearest support/resistance levels. Risk per trade is not more than3% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts of 50%, 30% and 20% with the use of trailing stop.