The AUD/USD surged 1.1% to a three-week high of 0.6237 as positive news regarding COVID 19 from china is motivating investors fo buy Aussie. The AUD/USD currency pair instantly gained around 30-35 pips from daily lows and is currently placed in the neutral territory, around the 0.6230 regions as the market attention now turns to the U.S. macro releases.
During the U.S. session, the trader will keep their eyes on the release of initial weekly jobless claims, with March PPI figures could influence the USD price dynamics and provide some trends in Fx trading. The virus updates will be critical to watch for fresh directions. Therefore traders will keep their eyes on the COVID-19 clues for near-term direction.
Technically, the AUD/USD has violated the resistance level of 0.6200, and the closing of candles above this level may drive bullish bias in the AUD/USD currency pair. On the 4 hour timeframe, the Aussie dollar has formed a bullish channel, while the AUD/USD 50 EMA also supports the bullish bias, which may lead its prices higher towards 0.6325 resistance level today. Considering this, we have entered a buying trade at 0.62473 with a stop loss of around 0.61773 and take profit at 0.62473.
Buying Price: 0.62473
Take Profit 0.63173
Stop Loss 0.61773
Profit & Loss Per Standard Lot = -$700/ +$700
Profit & Loss Per Micro Lot = -$70/ +$70