AUD/USD Up Above Key Support Level
On Mr. Aussie side, Australia's GDP beat expectations last Wednesday. National Australia Bank (NAB)'s business confidence and the number of new loans granted for owner-occupied homes beat expectations Tuesday morning during the Asian session.
However Australia's trading buddy, China's PPI came in slightly worse than expected which created confusion in the market. The Reserve Bank of Australia (RBA)'s governor Stevens will speak on Wednesday, and potentially give us more headlines about the possibility of a rate cut which could give Mr. Aussie a direction on the forex dance floor.
Australia's central bank Governor Stevens is keeping the door open for further easing. Urging the government to refrain from further spending cuts and in a frantic bid to boost demand amidst a background disappointing growth over the past two years. A further cut to the already record low levels as all but a certainty. Too easy, who knows.
The Australian dollar dancing against US dollar (AUD/USD) bounced back up above 0.76 for the fifth time since March 2015, making this level an extremely important boundary for FX traders. The pair is currently forming a spinning top candlestick pattern right below the Ichimoku cloud and and the RSI is heading straight below the neutrality area.
Market Sentiment: Indecisive
Forex Trading idea: If the pair confirms above the Ichimoku cloud we could see more rallies back towards the 23% Fibonacci. set your stop loss at 0.7731.
Range traders can enter positions between 0.7731 and 0.7600 in either direction.
Alternative Scenario: Below 0.7600 look for a reversal towards the 0.75 level
Where to set your stops and limits:
|Support Levels||Turning Point||Resistance Levels|
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.