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AUDUSD: Forex Technical Analysis – Strong economic data bullish for Australian dollar

By IFCMarkets

Strong economic data bullish for Australian dollar

Australian economic data were strong recently. Will the AUDUSD rebound?

The Reserve Bank of Australia held the interest rate at 1.5% for the thirteenth month at its October 5 policy meeting. Since then Australian economic data have largely been positive. Balance of trade rose in August to 0.99 billion Australian dollars from 0.81 billion in previous month as exports rose 1% while imports remained steady. At the same time business confidence improved in September and consumer confidence rose sharply in October. Improving data point to continued strength of Australian economy after GDP growth accelerated in the second quarter.

AUDUSD

On the daily timeframe AUDUSD: D1 is retracing higher after decline following the seventeen-month high in the beginning of September. The price has fallen below the 50-day moving average MA(50).

We believe the bullish momentum will continue after the price closes above the MA(50)and the fractal high at 0.7875. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the fractal low at 0.7732. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (0.7732) without reaching the order (0.7875), we recommend cancelling the position: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position Buy
Buy stop Above 0.7875
Stop loss Below 0.7732

Market Analysis provided by IFCMarkets

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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