Tag: AUD/USD

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Forex Signals

AUD/USD Violates Bearish Flag – Bearish Bias Dominates!   

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The AUD/USD pair was closed at 0.70685 after placing a high of 0.71144 and a low of 0.70685. Overall the movement of the AUD/USD pair remained bearish throughout the day. The AUD/USD pair extended its previous day’s losses and dropped for the third consecutive day on Monday as the market sentiment soared after the reports from the US dampening hopes of a US COVID-19 stimulus deal.

The upbeat Chinese GDP data for the third quarter gave strength to the Australian dollar and helped AUD/USD pair to open its week on a strong note. The Asian giant’s economy and the largest trading partner of Australia expanded by 4.9% in Q3 and showed strong industrial output and consumption figures that pointed out a strong recovery from the pandemic that hit Q2 hardest.

The China-proxy Aussie gained traction after the upbeat data from China, and the US dollar became weak, ultimately pushing the AUD/USD pair on the higher side in the early trading session on Monday. However, the gains were short-lived, and the AUD/USD pair’s movement reversed as the hopes for a US stimulus package faded away.

During the Weekend, the statement from Nancy Pelosi that a deal might be reached before elections over the US stimulus package gave strength to the risk sentiment. The improved risk sentiment pushed AUD/USD pair to open on a strong note, but the upward momentum was broken after hopes deteriorated on Monday.

The Republicans added another 0.1 trillion dollars to the previous $1.8 trillion stimulus package that failed to get approval. The US President showed his willingness to approve more stimulus before elections; however, he needed to deal with Republicans first. The US House Speaker Nancy Pelosi provided a 48-hours deadline to Republicans to reach a deal to pass the coronavirus stimulus package before elections. 

The mixed situation has weighed on the risk sentiment as the stimulus hopes are fading with the passage of time and the risk perceived Aussie suffered that reversed the direction of AUD/USD pair on Monday.

The pair AD/USD started moving in the downward trend because of the rate differentials between 10-year government bond yields of Australia and the US. The US 10-year Treasury yields were around 0.77%, and the Australian counterpart was at 0.750%. 

The market participants will be looking forward to the release of monetary policy meeting minutes from the Reserve Bank of Australia on Tuesday and will keep following the bearish bias until finding some fresh clues for future trading.


Daily Technical Levels

Support Resistance

0.7078 0.7101

0.7064 0.7110

0.7056 0.7124

Pivot point: 0.7087

The AUD/USD is trading at the 0.7043 level, having violated the bullish flag pattern on the 2-hour timeframe. On the lower side, bearish trend continuation can lead the AUD/USD pair towards the support area of 0.7014 level. At the same time, the support continues to stay at the 0.7068 level. The bearish bias remains dominant today; therefore, we should look for selling trades below the 0.7067 level today. Good luck! 

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Forex Signals

Bearish Flag in AUD/USD – Can we Expect Bearish Trend Continuation?  

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

During Monday’s early Asian trading session, the AUD/USD currency pair failed to stop its Friday’s losing streak and witnessed some fresh selling on the first trading day of the week while dropped to the near three-week lows below the 0.7100 level. However, the prevalent bearish sentiment around the currency pair could be associated with the on-going expectations of further policy easing by the RBA, which tends to undermine the Australian dollar and contribute to the currency pair losses. 

Apart from this, the currency pair’s declines were further bolstered by the long-lasting tussle between the US-China and stimulus deadlock in the U.S., which leads to the decline in U.S. stock’s future. This, in turn, undermined the perceived risk currency Australian dollar and contributed to the currency pair losses. The acceleration in the coronavirus (COVID-19) wave 2.0 also played its major role in undermining the market trading sentiment, which adds further burden around the perceived risk currency Australian dollar and dragged the currency pair low. On the contrary, the declines in the broad-based U.S. dollar, triggered by the combination of factors, becomes the factor that helps the currency pair to limit its deeper losses. At this time, the AUD/USD is currently trading at 0.7085 and consolidating in the range between 0.7073 – 0.7086.

As we already mentioned that the AUD/USD currency pair took a hit from Reserve Bank of Australia’s Governor Philip Lowe, who had provided a strong hint on Thursday that the central bank will likely cut interest rates, or announce further stimulus measures at its next meeting in early-November in order to support jobs growth and alleviate currency pressures within the current pandemic situations. This, in turn, undermined the Australian dollar.

The global market trading sentiment failed to stop its Friday negative performance and remains pessimistic on the day amid the intensifying market worries over the rapid rise in new coronavirus cases, which leads to the new lockdown restrictions and hinder the global economic recovery, undermining the perceived riskier Australian dollar. Elsewhere, the intensifying tensions between the U.S. and China added additional burdens around the global trading market. The tension between the world’s two largest economies fueled further after China aggressively warns the U.S. to step back from Taiwan Strait. However, these lingering Sino-US tensions keep challenging the risk market sentiment and contributed to the currency pair losses.

Apart from this, the U.S. policymakers’ inability to offer the much-awaited COVID-19 stimulus also played its major role in weakening the market trading sentiment, which in turn, exerted some additional pressure on the perceived riskier Australian dollar and contributed to the currency pair losses.

 

Across the pond, the reason for the downbeat market trading sentiment could also be associated with the China-Australia tussle. Having initially halted Aussie coal and cotton, the Dragon Nation recently passed a law to limit exports of its controlled items. This shows China’s willingness to combat global criticism to dump the markets with exports and heavy risks. 

Despite the U.S. upbeat data, the broad-based U.S. dollar failed to stop its bearish bias and remained under pressure on the day. Moreover, the U.S. dollar losses could also be associated with political uncertainty in the U.S. ahead of U.S. elections. Thus, the weaker U.S. dollar is seen as the major factor that kept the currency pair higher. Simultaneously, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 93.705.

Looking forward, the traders will keep their eyes on China’s 3td-quarter (Q3) GDP, which is expected 5.2% YoY against 3.2% prior. In the meantime, the Fed Chair Powell Speaks will closely be followed. At the same time, the NAHB Housing Market Index data will also be key to watch. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.6931

S2 0.7014

S3 0.7054

Pivot Point 0.7096

R1 0.7137

R2 0.7179

R3 0.7261

The AUD/USD is trading with a bearish bias at the 0.7092 level, forming a bearish flag pattern on the four hourly timeframes. A bearish breakout of 0.7068 level supports the pair; however, this support violation can trigger selling until 0.7014 level. On the flip side, a bullish crossover of 0.7107 can lead the AUD/USD price towards the next target level of 0.7165. Good luck! 

Good luck!

Categories
Forex Signals

AUD/USD Breaks Below Upward Channel – Braceof Sell Upon Retracement! 

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

During Thursday’s early European trading hours, the AUD/USD currency pair failed to stop its previous session bearish moves and took further offers near well below 0.7100 level, mainly due to the disappointing release of employment details, which showed that Australia’s economy lost 29.5K jobs in September. This, in turn, undermined the Asutliann dollar and contributed to the currency pair declines. Apart from this, the increasing probabilities of an interest rate cut by the Reserve Bank of Australia in November also played its major role in undermining the Australian dollar. Across the pond, the prevalent risk-off market sentiment, triggered by the worsening coronavirus (COVID-19) conditions in Europe and the U.K., exerted some additional pressure on the perceived riskier Aussie and dragged the currency pair below 0.7100 mars.

However, the global risk sentiment was further pressured by the fading hopes of additional U.S. fiscal stimulus. On the data front, the economy has lost 29.5K jobs in September against expectations for 35K losses and down from August’s 111K additions. The seasonally adjusted Unemployment Rate surged to 6.9% against expectations for a rise to 7.1% from 6.8%. In the meantime, the part-time jobs dropped by 9.4K in September against 74.8K additions in August. At the same time, the full-time employment sank by 20.1K against 36.2K additions in August. 

Considering the recent condition of the economy, the RBA’s Governor Lowe said that the benchmark interest rate could be cut down to 0.10% from the current record low of 0.25%, which undermined the Australian dollar exerted some additional pressure on the currency pair. The market trading sentiment remains depressed during the early European session as the condition of the second wave of coronavirus infections in Europe and the U.K. getting worse time by time, which suggests that the local lockdowns cannot tame the pandemic, which in turn suggests fresh national activity restrictions. 

In the meantime, the fears of a no-deal Brexit and the dovish tone of major central bankers pushing for further fiscal help also exert downside pressure on the market trading sentiment, which in turn undermined perceived riskier Aussie and dragged the currency pair below 0.7100 marks.

Additionally, the long-lasting inability to pass the U.S. fiscal package also weighed on the risk sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair gains. Despite U.S. President Donald Trump’s recent push to break the coronavirus stimulus deadlock, the opposition Democratic Party remains up in its demands. As per the latest report, the U.S. Treasury Secretary Mnuchin recently blamed the opposition to put obstacles for the much-awaited aid package before the presidential election to keep President Donald Trump lagging the election polls. 

At the US-China front, the renewed concerns over worsening diplomatic tensions between the world’s two largest economies also exerted downside pressure on the market trading, which keeps the AUD/USD currency pair under pressure. Other than the US-China tussle, Australia and China are also loggerheads with each other.

As a result, the broad-based U.S. dollar succeeded in extending its Asian session loss gains es and took some further bid during the early European session as investors still prefer the safe-haven assets in the wake of the risk-off market sentiment. However, the U.S. dollar gains seem rather unaffected by the intensifying political uncertainty ahead of the upcoming U.S. presidential election on November 3. However, the incoming polls tend to recommend a clear-cut presidential success for the Democrat nominee Joe Biden, which might cap additional upside momentum for the U.S. dollar. However, the U.S. dollar gains become the key factor that kept the currency pair under pressure. At the same time, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies inched up 0.02% to 93.398 by 9:58 PM ET (1:58 AM GMT).

Looking forward, the traders will keep their eyes on the weekly U.S. Initial Jobless Claims, which is expected 825K versus 840K prior. Apart from this, the continuous drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose their importance. 


Daily Support and Resistance

S1 0.7095

S2 0.7133

S3 0.715

Pivot Point 0.717

R1 0.7187

R2 0.7208

R3 0.7245

The AUD/USD pair has violated the double bottom support level of 0.7150 level, and below this, the pair may drop further until the next support area of 0.7098 level. On the higher side, the pair may find resistance at 0.7150 and 0.7190 level. The bearish bias remains solid today, especially below 0.7150.

Entry Price – Buy 105.245

Stop Loss – 105.645

Take Profit – 104.845

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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Categories
Forex Signals

AUD/USD Fails to Gain Positive Traction Amid Risk Aversion Waves! 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

The AUD/USD currency pair failed to stop its early-day losing streak and drew some further offers around well below the 0.7200 level, mainly due to the risk-off market sentiment. The intensification of the Sino-American tussle drove that. The American stimulus package’s ambiguity also weighed on the market trading tone, which eventually undermined the Australian dollar’s perceived risk currency and contributed to the currency pair declines. 

On the other hand, the coronavirus (COVID-19) vaccine’s hopes failed to provide meaningful support to the market trading sentiment, keeping the currency pair under pressure. Apart from this, the bearish tone around the currency pair could also be associated with the broad-based U.S. dollar prevalent strength. The U.S. dollar was being supported by the market risk-off sentiment. At the moment, the AUD/USD currency pair is currently trading at 0.7179 and consolidating in the range between 0.7165 – 0.7214.

However, the market risk tone has been sluggish since the day started due to the combination of factors. Be it the U.S. lawmakers’ failure to offer any positive announcement on the coronavirus (COVID-19) relief package or the fresh escalation in the Sino-American tussle, not to forget the Brexit woes, these all factors have been pressing the market risk tone. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair declines. 

At the US-China front, China recently showed his dislikes over the White House arms sale to Taiwan and the recent ban from China to use Aussie coal for power stations, which eventually offered additional pressure to the market sentiment and contributed to the currency pair losses.

Moreover, the market trading sentiment was further bolstered by the rising coronavirus cases in the U.S. and Europe, fueling worries about global economic recovery. According to the coronavirus (COVID-19) data from Germany’s Robert Koch Institute (RKI), the country’s cases rose around ~39,000 as of yesterday while the latest update today added 13 deaths more so that brings the total tally to 9,634 persons. At the U.S. front, the virus will firm its grip in the world’s largest economy, said by the U.S. health official Dr. Anthony Fauci. Hence, the pandemic fears regaining market attention and kept the investors cautious.

As in result, the broad-based U.S. dollar managed to keep its gains throughout the day as the traders still cheering the risk-off market tone, which keeps the safe-haven demand high in the market. However, the U.S. dollar gains seem rather unaffected by the U.S. political uncertainty ahead of U.S. elections. Thus, the gains in the U.S. dollar become the key factor that kept the currency pair under pressure Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, rose by 0.11% to 93.207 by 10:04 PM ET (2:04 AM GMT).

However, the coronavirus (COVID-19) vaccine’s hopes failed to help the market sentiment on the day as the market negative headlines overshadowed the vaccine-related optimism and kept the trading sentiment negative. Anyhow, these hopes might play a key role that could help the market trading sentiment to limit the currency pair’s deeper losses.

On the contrary, the Australian dollar is a little impressed by the unexpected rise in Chinese imports last month, strengthening the domestic economy. At the data front, China’s Trade Balance for September, in Yuan terms, arrived in CNY257.68 billion against CNY416.59 billion last. Whereas, September exports arrived in +8.7% against .+11.6% last while imports came in at +11.6% vs. -1.3% expected and -0.5% prior.


Looking forward, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) data. Furthermore, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance.

Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUD/USD is taking a bullish turn over a support level of 0.7160 level, perhaps, to complete a 23.6% Fibonacci retracement at 0.7180 and 0.7197 level. On the higher side, AUD/USD may face the next resistance at 0.7203 level. It’s the same level where the downward trendline is likely to match and extend resistance to the AUD/USD level. Good luck! 

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Forex Signals

AUD/USD Failed To Gain Any Positive Traction – Double Bottom Supports! 

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The AUD/USD failed to stop its early-day losing streak and dropped to 0.7213 level, mainly due to the broad-based U.S. dollar strength, backed by the stalled stimulus talk. Apart from this, the fears of a hard Brexit and surge in the coronavirus (COVID-19) fears from Europe keep challenging the market risk-on tone, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. On the contary, the market risk-on sentiment, supported by the vaccine hopes helped the currency pair to limits its deeper losses. At the press time, the AUD/USD is trading at 0.7230 and consolidating in the range between 0.7213 – 0.7236. Moving on, the progress in the currency pair is expected to remain sluggish amid the U.S. holiday.

The market risk-on sentiment faded after the House Speaker Nancy Pelosi rejected Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion. Apart from this, the on-going surge in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears also weighs on the market risk sentiment, which undermined the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the no-deal Brexit is gradually gaining momentum as the European Union (E.U.) and the U.K. are still at loggerheads, despite being near the October 15 deadline. 

Across the pond, the latest figures from Europe and the U.K. keeps leading the national lockdowns. As per the latest report, France reported record 27,000 new cases with German infections surging by the most since April, which kept fueling the worries over the global economic recovery and kept the currency pair under pressure. 

As a result, the broad-based U.S. dollar succeeded in stopping its early-day losses and took the fresh bids on the day. However, the U.S. dollar gains could be temporary as worries over the economic recovery in the U.S. could be stopped amid the reappearance of coronavirus cases and U.S. post-election uncertainty. 

The People’s Bank of China (PBOC) set the financial institutions free from the need to set aside cash when purchasing F.X. for clients through forwards. These moves could negatively impact the Chinse currency as the same moves were taken in September 2017, which resulted in over 2.0% drop of the Chinese yuan (CNY) during the following three weeks. Thus, any Chinese currency loss tends to undermine the Australian dollar as China is the biggest customer in Australia.


Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bullish bias over 0.7203 level, and continuation of an upward trend may lead AUD/USD price towards 0.7253 level. On the lower side, the support stays at the 0.7203 area today. We may see the AUD/USD to trade bullish until 0.7250 and 0.7330. Good luck! 

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Forex Signals

AUD/USD Bullish Bias Continues to Dominate – Three White Soldiers in Play! 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The AUD/USD pair was closed at 0.71398 after placing a high of 0.71513 and a low of 0.70954. Overall the movement of the AUD/USD pair remained bullish throughout the day. After posting massive losses on Tuesday, the AUD/USD pair reversed its direction on Wednesday and started to rise and managed to recover most of its previous daily losses. 

The rise in AUD/USD pair on Wednesday could also be attributed to Wall Street’s rebound amid confusion over the US stimulus plan and uncertainty about the upcoming US Presidential elections. On Tuesday, Trump broke off negotiations with Democrats and said that Republicans would not negotiate on the next round of stimulus measures until after the election. He added that a major stimulus bill would be passed if he wins. This statement from him caused a bid drop in Wall Street on Tuesday over concerns whether he will win or not as stimulus will be dependent on that.

However, on Wednesday, Trump again dismissed his previous statement and called for more financial support for Americans, especially airline workers and small businesses. This news helped US stocks to reverse and move higher and recover some of its previous daily losses. The rebound in Wall Street added in the risk sentiment and helped the riskier AUD/USD currency pair move higher.

The risk sentiment was also supported by the latest announcement from the US Food and Drug Administration (FDA) that said that vaccines’ availability would be delayed until after the US Presidential elections. This news also added strength to the AUD/USD pair due to its riskier nature.

Meanwhile, the Federal Reserve issue minutes from its September meeting, and the minutes failed to provide any meaningful direction to the pair as Fed officials called for further support from US Congress for supporting the economic recovery.

Minutes also showed that economic data were improving, but the economic growth was still bumpy. The President of Minneapolis Federal Reserve, Neel Kashkari, said that if the next round of stimulus package was not approved, then the US economy will face enormous consequences. He stated that further delay would cause a much worse downturn in the economy as there were no moral hazards in delivering more financial aid. The Fed’s comments also raised risk sentiment and helped the riskier Aussie gain traction in the market and add further to the AUD/USD pair’s an upward trend.


Daily Technical Levels

Support Resistance

0.7105 0.7162

0.7072 0.7186

0.7048 0.7219

Pivot point: 0.7129

The AUDUSD is likely to trade with a choppy within a narrow trading range of 0.7203 to 0.7098. On the four hourly timeframes, there’s an upward trendline that extends support at 0.7098 level, and above this, the pair has the potential to bounce off until 0.7175 and 0.7203 level. Conversely, the bearish breakout of 0.7020 can lead AUD/USD pair further lower towards 0.7060 and 0.7010. Good luck!

Entry Price – Buy 0.7162

Stop Loss – 0.7122

Take Profit – 0.7202

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Breaking Below Descending Triangle Pattern – Brace for Selling! 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

The AUD/USD currency pair failed to extend its early-day bullish moves and dropped below the 0.7200 level despite the upbeat market sentiment and weaker U.S. dollar. Conclusion: as we all know that these both factors tend to support the currency pair; unfortunately, the currency pair was rather unaffected by these positive factors. However, the reason for the ongoing bearish sentiment around the currency pair could be associated with the RBA’s announcement of no rate change, which is seen as negative, or bearish for the AUD currency. 

Meanwhile, the losses in the currency pair were further bolstered after the RBA shared a dovish view on the Australian economy, which eventually undermined the Australian dollar and contributed to the currency pair gains. On the contrary, the broad-based U.S. dollar weakness, buoyed by the market risk-on mood, could be considered the key factor that might cap the further downside for the currency pair. Furthermore, the positive reports over the U.S. President Donald Trump’s health also help the currency pair limit its deeper losses. The AUD/USD currency pair is currently trading at 0.7152 and consolidating in the range between 0.7147 – 0.7208.

Despite the ongoing rise in the COVID-19 cases, coupled with the fears of lockdown restrictions, the pair’s loosest trading sentiment has been flashing green since the day started. However, the market trading tone was being supported by the optimism over the U.S. President Trump’s health. As per the latest report, the U.S. President Donald Trump returned to the White House after a three-night hospital stay due to coronavirus infection, which boosted the market risk tone and helped the currency pair to limit its deeper losses. 

However, the concern over the U.S. President Trump’s health remains on the card. It should be noted that the U.S. President Trump released a video to confirm that he will soon trail the presidential election race, after losing a high time off-late. However, the video clip showed that U.S. President Trump’ is still struggling while speaking, raising concerns for his health. Thus, these concerns might keep the market sentiment cautious.

At home, the Reserve Bank of Australia (RBA) kept its cash rate and the targeted yield on 3-year bonds unchanged at 0.25% during the latest announcement. In the meantime, the RBA shared a dovish view on the Australian economy, which undermined the Australian dollar and contributed to the currency pair losses. According to the RBA latest report, Unemployment and underemployment rate are expected to remain high for an extended period, as well as “Wage, and inflation pressures remain very depressed.”.

Furthermore, the reason for the losses in the currency pair could be associated with some repositioning trade ahead of the Australian budget. It should be noted that the Australian government is expected to unveil a fiscal blueprint and introduce other measures to drive the economic recovery from the coronavirus-induced recession. This might weak the AUD demand and drag the currency pair further down.


At the USD front, the broad-based U.S. dollar failed to gain any positive traction on the day amid risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with the rising hopes that the U.S. Congress will reach an agreement over the latest stimulus measures to control the economic impact of COVID-19. However, the U.S. dollar losses became the key factor that kept the currency pair’s losses limited. Whereas, the U.S. Dollar Index, which tracks the greenback against a bucket of other currencies, dropped by 0.03% to 93.468 by 9:52 PM ET (1:52 AM GMT). Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.

Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUDUSD is likely to trade with a bearish bias today, as we can see on the hourly timeframe, gold has violated an upward trendline support level of 0.7177 level, and the closing of candles below this level is likely to drive selling bias until 0.7160 and 0.7140 level. Selling bias remains dominant today.

Entry Price – Sell 0.71701

Stop Loss – 0.72101

Take Profit – 0.71301

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Bearish Bias Continues – Ascending Triangle Pattern!

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

The AUD/USD currency pair succeeded to stop its early-day losses and drew some fresh bids around closer to the 0.7200 level mainly due to the risk-on market sentiment, backed by the positive news over the U.S. President Donald Trump’s recovery from COVID-19, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. As per the latest report, the doctors of U.S. President Donald Trump said that he and his wife could be discharged from the hospital as soon as Monday. 

Apart from this, the trading sentiment was further bolstered by the updates suggesting a sooner end to the deadlock over the U.S. aid package talks. Besides, the fresh hopes of a soft Brexit, triggered after the weekend meeting between the UK PM Boris Johnson and E.U. Commission President Ursula von der Leyen, also favors the market risk-tone extended further support to the currency pair. Across the pond, Australia reports suggest a A$7.5B boost for transport infrastructure spending, which also gave additional support to the Australian dollar and helped the currency pair to stay bids on the day. 

In the meantime, the broad-based U.S. dollar selling bias, triggered by the marker risk-on sentiment, also played its major role in supporting the currency pair. Moreover, the U.S. dollar losses were further bolstered by the intensifying doubts over the U.S. economic recovery. On the contrary, the virus news from elsewhere keeps challenging the upbeat market sentiment and becomes the key factor that kept the pressure on any additional gains in the AUD/USD pair. The AUD/USD currency pair is currently trading at 0.7172 and consolidating in the range between 0.7158 – 0.7191.

It is worth recalling that the AUD/USD currency pair has been pressured since Friday after the negative news of U.S. President Donald Trump and his wife’s infection to the coronavirus (COVID-19). However, America’s fresh and positive updates helped the equity market stop its deeper losses on the day. The latest updates from the U.S. suggest that President Trump and his wife recover from the virus-led illness. Moreover, the hopes were further fueled after the comments from doctors off U.S. President Donald Trump, suggesting he and his wife could be discharged from the hospital as soon as Monday. 

Moreover, the market risk tone was further bolstered by optimism over the U.S. aid package talks. These hopes were originated after the U.S. House Speaker Nancy Pelosi showed positive signals about reaching the stimulus deal. On the other hand, the meeting between the UK PM Boris Johnson and E.U. Commission President Ursula von der Leyen over the weekend also offers fresh hopes of the oft Brexit, which also kept the market trading sentiment upbeat. 

Across the ocean, bullish sentiment around the AUD/USD currency pair was further bolstered by the reports suggesting that the Australian Deputy Prime Minister (PM) Michael McCormack is ready to announce a further $7.5 billion new transport infrastructure spending in Tuesday’s federal budget. Looking forward, the market traders keeping their eyes on the news concerning the American President’s health. Apart from this, the US ISM Services PMI for September, expected 56.0, would be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 0.7068

S2 0.7112

S3 0.7138

Pivot Point 0.7157

R1 0.7182

R2 0.7201

R3 0.7245

The AUD/USD pair is trading sideways in a narrow trading range of 0.7190 – 0.7170. The bullish breakout of 0.7190 level can drive buying until the 0.7240 resistance level, while the bearish breakout of 0.7170 can extend selling until 0.7160 and 0.7149 level. Let’s consider waiting for a breakout before taking any trades. Good luck! 

Categories
Forex Signals

AUD/USD Completes 61.8% Fibonacci Retracement – Brace for Buying Signal! 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

The AUD/USD currency pair failed to extend its early-day gains and edged lower around below the mid-0.7100 level, mainly due to the risk-off market sentiment triggered by the latest headlines surrounding U.S. President Donald Trump’s infection to the coronavirus (COVID-19). 

Furthermore, the renewed concern about the second wave of coronavirus infections also weighed on the market trading sentiment, which eventually undermined the perceived riskier Australian dollar and contributed to the currency pair declines. In the meantime, the U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also keeps the market trading sentiment under pressure. Across the ocean, the broad-based U.S. dollar strength, supported by the risk-off market sentiment, also played its significant role in lowering the currency pair. 

On the contrary, the upbeat Aussie Retail Sales data showed that the Australian Retail Sales shrank lesser than -4.2% forecast to -4.0% in September, becoming the key factor that helps the currency pair limit its deeper losses. 

Concerns over the resurgence of the coronavirus pandemic have been ruining the hopes of the global economic recovery, which keeps the market trading sentiment under pressure and weakened the perceived riskier Australian dollar. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days. Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported new infections records. 

Apart from this, the chatters over the U.S. President Donald Trump’s infection to the coronavirus (COVID-19) and U.S. policymakers’ failures to break the deadlock over the COVID-19 stimulus talks also exerting downside pressure on the market risk tone. However, the Democrats pushed their bill amount of $2.2 trillion through the house to boost the pessimism surrounding the discussions as Republicans are less interested in approving anything beyond a $1.5 trillion package.

On the contrary, the currency pair’s losses were capped by the upbeat Aussie Retail Sales data, which instantly gave some support to the Aussie currency and helped the currency pair limit its deeper losses. At the data front, the Australian Retail Sales beat the preliminary forecast of -4.2% with -4.0% prints in September. In doing so, the data reverses the previous month’s 3.2% advances.


Daily Support and Resistance

S1 0.6878

S2 0.6959

S3 0.6994

Pivot Point 0.704

R1 0.7075

R2 0.7121

R3 0.7202

On the 2-hour timeframe, the AUD/USD pair has completed a 61.8% Fibonacci retracement around the 0.7138 level, and above this, the odds of bullish trend continuation will remain high until the 0.7174 level. The MACD histograms are also becoming weaker and signaling that the sellers are exhausted, and bullish may enter in the market now. Considering this, we have entered a buying trade in the AUD/USD pair. Checkout a trading plan below.  

Entry Price – Buy 0.71649

Stop Loss – 0.71249

Take Profit – 0.72049

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Pair Succeeded to Extend Asian Session Gains – Update on Signal!

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Today in the early European trading session, the AUD/USD currency pair extended its Asian session winning streak and took further bids around an intraday high closer to 0.7200 level mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the expectations of U.S. stimulus also favored the market’s risk-on, which underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

Besides this, the currency pair got an extra boost mainly after the welcome number of China PMIs and US ADP, which extended further support to the market trading sentiment. Across the pond, the broad-based U.S. dollar weakness, triggered by the market risk-on tone, also played a significant role in supporting the currency pair. On the contrary, the renewed tension between the US-China, as well as, the rising COVID-19 cases all over the Europe and U.S. keeps challenging the upbeat market mood and becomes the key factor that keeps the lid on any additional gains in the currency pair. At this time, the AUD/USD currency pair is currently trading at 0.7 86and consolidating in the range between 0.7155 – 0.7198.

However, the reason for the risk-on market sentiment could be associated with the renewed probabilities of the further stimulus package as well as the hopes of the coronavirus (COVID-19) vaccine also favoured the market risk tone, which tends to underpin the perceived risk currency Australian dollar and helps the pair to put strong bids. The U.S. Congress tries hard to agree on the coronavirus (COVID-19) aid package with Republicans up for $1.5-$1.6 trillion against Democratic demand of $2.2 trillion. While the immediate discussions have failed, the policymakers pushed back the final voting on the stopgap funding, giving indirect hints of one more day for the politicians to agree on the much-awaited stimulus. Across the pond, the call of the Japanese stimulus also helps the risk-tone sentiment on the day.

On the other hand, the market trading sentiment was further bolstered by optimism over a possible vaccine and treatment for the highly infectious coronavirus. Furthermore, the Brexit-positive sentiment, backed by the reports suggesting that the E.U. stepped back from warnings to leave the trade and security talks, also exerted a positive impact on the market trading sentiment. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.

As in result, the Wall Street benchmark succeeded to extend its overnight positive tone, despite stepping back during the last hour. While the U.S. 10-year Treasury yields also gained over 4-basis points (bps) to 0.686% on the day. The U.S. dollar remains depressed during the Asian session amid market risk-on sentiment. On the other hand, the cautious mood of traders ahead of the U.S. presidential election also weighed on the U.S. dollar.

The fears of the coronavirus (COVID-19) and political uncertainty are also challenging the market risk-on tone, which becomes the key factor that kept the lid on any additional gains in the currency pair. Elsewhere, the rising COVID-19 cases are causing major problems all over the U.S., Europe, and the U.K., which keep fueling the fears of lockdown restriction. As per the latest report, the coronavirus has infected more than 7.2 million and killed more than 206,000 people in the United States.

Looking ahead, the market traders will keep their focus on the key US ISM Manufacturing PMI for September, and the weekly Jobless Claims data. Across the pond, Australia’s AiG Performance Mfg Index and Commonwealth Bank Manufacturing PMI will also be key to watch. Whereas, the headlines concerning Brexit, pandemic, and the U.S. Presidential Election will not lose their importance.


Daily Support and Resistance

S1 0.7025

S2 0.7106

S3 0.7137

Pivot Point 0.7186

R1 0.7217

R2 0.7266

R3 0.7346

The AUD/USD has violated the double top resistance level of 0.7142, and bullish crossover of this level makes 0.7142 a support for the AUD/USD pair. On the higher side, the AUD/USD pair may go after the next resistance area of 0.7235 level. Conversely, the bearish breakout of 0.7142 may drive further selling until 0.7084. Bullish bias seems stronger today. 

Entry Price – Buy 0.71844

Stop Loss – 0.71444

Take Profit – 0.72244

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Hard Luck with AUD/USD Signal – What’s Next?

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

The AUD/USD extended its early-day gains and hit the intra-day high of 0.7069 marks mainly due to the broad-based U.S. dollar weakness. That was sponsored by the downbeat U.S. unemployment claims data, which fuel the fears that the U.S. economic recovery is failing. Apart from this, the market risk-on sentiment also undermined the safe-haven U.S. dollar and contributed to the currency pair gains. Across the pond, the gains in the S&P 500 futures, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment, also lend further support to the currency pair.

Meanwhile, the hopes of the COVID-19 stimulus measures package also helped the marker trading sentiment gain further positive traction, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. On the contrary, the downbeat Aussie trade data could be considered one of the key factors that kept the lid on any further gains in the currency pair. At this particular time, the AUD/USD currency pair is currently trading at 0.7060 and consolidating in the range between 0.7045 – 0.7069.

As per the latest report, Australia’s trade surplus shrank in August, released at 01:30 GMT showed. Details suggested that the Australian imports dropped by 7% month-on-month in August after July’s 7% rise. In the meantime, the exports also fell by 2% in August, having declined by 4% in July. The trade surplus decreased to AUD 4,294 million from AUD 4,607 million. However, the substantial fall in the inbound shipments suggested a weakening of national demand. Whereas, the consecutive monthly drop in outbound shipments indicates weak demand conditions in the global economy. This, in turn, becomes the key factor that limits the further upside in the currency pair.

Furthermore, the market risk tone was being supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. These positive vibes came after the report that Novavax Inc started a clinical late-stage trial of the coronavirus vaccine in the U.K. The experimental vaccine is produced on partnership terms with the government’s Vaccines Taskforce.

On the other hand, the reason for the upbeat trading sentiment could be associated with the talks concerning the U.S. coronavirus (COVID-19) stimulus package. Democrats in the U.S. House of Representatives recently spoke about their struggles over the $2.2 trillion COVID-19 stimulus package that could be voted on next week. Moreover, the hopes were further bolstered after the House of Representatives Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin hinted to resume delayed stimulus talks. This eventually exerted a positive impact on the market trading sentiment and extended support to the currency pair.

As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day amid risk-off market sentiment. Moreover, the U.S. dollar losses could also be associated with the downbeat U.S. unemployment data, which fueled the fears that the U.S. economic recovery is failing. However, the losses in the U.S. dollar kept the AUD/USD currency pair higher.

At the U.S. data front, the number of U.S. claiming unemployment over the past week rose to 870,000, indicating a halt in the economic recovery and highlighting the pressing need for Congress to pass the support measures. This negative data failed to weigh the market trading sentiment. Besides, the market trading sentiment was rather unaffected by the reports suggesting the rise in COVID-19 cases globally.

The market traders will focus on FOMC Member Williams Speaks. Apart from this, the Durable Goods Orders m/m will also be key to watch. Meanwhile, the USD moves and coronavirus headlines will also closely follow to play a key role in the currency pair.


The AUD/USD signal hit stop loss as the pair failed to break above 38.2% Fibonacci retracement level of 0.7075. Unfortunately, the AUD/USD pair reversed below 0.7075 level and hit out stop loss. For now, the AUD/USD pair may trade bearish until the 0.7010 level, while a bearish crossover of 0.7010 may lead the AUD/USD price towards 0.6975. Let’s brace for the next setup before placing the next trade. Good luck!

Categories
Forex Signals

AUD/USD Selling Bias Continues to Dominate – Brace for Sell Trade


Entry Price – Sell 0.70216
Stop Loss – 0.70616
Take Profit – 0.69816
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

AUD/USD Intraday Support Breakout Setup – Brace for Sell Setup! 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

The AUD/USD closed at 0.71693 after placing a high of 0.72349 and a low of 0.71693. The AUD/USD pair declined for a third consecutive day on Tuesday to its lowest level since the 25th of August on the back of broad-based US dollar strength and dovish comments from RBA Deputy Governor Guy Debelle. 

On Tuesday, the Deputy Governor of Reserve Bank of Australia, Guy Debelle, said that the bank assessed various monetary policy options, including market intervention and negative interest rates, to reach its inflation and employment goals. 

The current rate of interest of RBA is at its record low of 0.25%that was slashed in an emergency meeting in mid-March to secure the Australian economy from falling into recession due to coronavirus pandemic induced lockdowns. RBA also launched an unlimited government bond-buying program and a cheap funding facility for banks. Debelle said that RBA’s board assessed other policy options as the outlook for inflation and employment was not consistent with the bank’s goals. Some under observation options were buying government bonds with maturities beyond three years as the RBA is currently targeting a 3-year yield at 0.25%. 

The statement that the negative interest rate was also an option that RBA was considering weighed heavily on Aussie and dragged the pair AUD.USD pair on Tuesday. Meanwhile, from the US side, Jerome Powell and Treasury Secretary Steven Mnuchin before the US Congress were held on Tuesday. Powell said that a lot of the economic recovery was still dependent on the coronavirus developments; however, the economic indicators showed improvements. 

Whereas, Steven Mnuchin said that another round of stimulus measures was needed for better recovery. Another Fed official Charles Evans said that interest rates could be raised before inflation reached 2%. These comments increased the US dollar strength across the board, lifted the US dollar Index above 94 levels, and added further pressure on AUD/USD pair prices. On the data front, the Richmond Manufacturing Index from the US raised to 21 points from the projected 12 points and supported the US dollar that weighed on already declining AUD/USD prices. 


The bearish bias dominates the AUD/USD pair as it trades at 0.7132 level. The candle’s closing over 0.71140 can trigger buying until 0.7160, but overall bias seems bearish below the 0.7165 level. On the lower side, a breakout of 0.7102 level may drive selling until 0.7075.

Entry Price – Sell 0.71263

Stop Loss – 0.71663

Take Profit – 0.70863

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = –$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

AUD/USD Bearish Breakout, Fakesout – Quick Update on Signal!  

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

During Tuesday’s early European trading hours, the AUD/USD currency pair failed to erase its early-day losses and took further offers near below the 0.7200 marks, mainly due to the risk-off market sentiment backed by the escalation of tensions between the U.S. and China. Furthermore, the virus worries and the inability to pass the U.S. fiscal package also weighed on the risk sentiment, undermining the perceived riskier Australian dollar and contributing to the currency pair gains. 

The broad-based U.S. dollar strength backed by the market’s safe-haven demand also contributed to the currency pair losses. Moreover, the currency pair’s losses were further bolstered by the RBA Deputy Governor Guy Debelle’s less-confident comment. 

On the 2nd-day of the week, the Aussie buyers have nothing to cheer. Be it coronavirus woes or the further hardships for the Sino-American trade deal, not to forget the long-lasting inability to pass the U.S. fiscal package, everything has fueled the market risk-off sentiment, which tends to undermine the perceived riskier Australian dollar and contributed to the currency pair losses. 

At the US-China front, the long-lasting tussle between the United States and China became further soured after U.S. Secretary of State Mike Pompeo took helps from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This eventually exerted downside pressure on the market trading sentiment and undermined the Australian dollar’s perceived riskier and contributed to the currency pair losses. 

On the other hand, the struggle of the U.S. Congress to break the stimulus deadlock ahead of the September-end deadline keeps the traders cautious as Democrats and Republicans still have differences over the package’s size. Besides this, the renewed coronavirus woes and fears of fresh lockdown measures to curb the second wave of the outbreak also kept the market trading sentiment under pressure. At the coronavirus front, the coronavirus (COVID-19) resurgence in Europe and the U.K. is picking up further pace, which keeps the fears of the lockdowns on the cards. As per the latest report, the authorities in the U.K. recently announced restrictions over activities. Simultaneously, regional lockdowns have been in practice in some parts of the bloc, and the pubs and restaurants in the U.K. ordered to close at 10:00 PM. 

Considering the coronavirus (COVID-19) condition, the BOE policymakers marked their pessimism while the European Central Bank (ECB) President Christine Lagarde and Germany’s Finance Minister Olaf Scholz have already shared its dovish view over the virus. Across the pond, the Fed Chairman’s first version of testimony also cited that the track ahead for the economy remains “highly uncertain”, which in turn keeps the market trading sentiment under pressure and helps the safe-haven assets. 

As a result, the broad-based U.S. dollar succeeded in extending its previous session gains and remained well bid on the day as investors turned to the safe-haven in the wake of an intensified tussle between US-China. Thus, the gains in the U.S. dollar kept the currency pair lower. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, edged higher 0.04% to 93.602 by 9:48 PM ET (1:48 AM GMT).

Additionally, weighing on the currency pair could be the RBA Deputy Governor Guy Debelle’s negative comments that lower the exchange rate would surely help the economy. He further added that the economy is currently facing a gradual and uneven recovery. He also noted that the Aussie dollar is broadly aligned with fundamentals, and intervention may not be effective.

In the absence of significant data on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play an important role in managing the intraday momentum. Whereas, the release of Existing Home Sales and Richmond Manufacturing Index will be key to watch.


The bearish bias dominates the AUD/USD pair as it trades over a double bottom support level of 0.7191 level. Holding above 0.7191 level can extend bullish bias; however, the pair may find an immediate resistance at 0.7234 level. A bullish crossover of 0.7234 level is likely to drive a bullish trend until the 0.7290 level today. On the lower side, the pair may find support at 0.7143 level. The signal is already closed at stop loss, as the bearish breakout setup has become a fakeout setup, and the AUD/USD pair is now moving upwards. Let’s brace for the next trade setup. Good luck! 

Categories
Forex Signals

AUD/USD Slips below Double Top – Brace for Selling Trade! 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

The AUD/USD pair was closed at 0.72907 after placing a high of 0.73338 and a low of 0.72823. Overall the movement of the AUD/USD pair remained bearish throughout the day. Despite the positive comments from Prime Minister Scott Morrison, the AUD/USD pair dropped on Friday amid the declining risk sentiment. 

After the National Cabinet, the Australian Prime Minister said that the Victoria state’s coronavirus declines were encouraging. He confirmed the current capacity of citizens allowed to return home per week that were put in place in mid-July would be lifted to ultimately 6000 as the virus situation has improved. 

Morrison said that states have agreed to boost quarantine capacity and the number of people allowed into Australia each week by mid-October. These positive comments related to the country’s virus situation failed to provide some strength to AUD/USD pair on Friday as the focus was on the US dollar.

The positive Prelim UoM Consumer Sentiment supported the US dollar for September that was advanced to 78.9 from the expectations of 75.0 and the previous 74.1. The improved consumer confidence in the US economy gave a push to the US dollar that ultimately weighed on AUD/USD pair on Friday.

Meanwhile, the risk perceived Aussie also suffered due to faded risk appetite in the market after the coronavirus cases continue to increase worldwide as the total confirmed cases surpassed the 30M figure as per Johns Hopkins University. The rising coronavirus figures supported the market’s safe-haven appetite and weighed on Aussie that dragged the AUD/USD pair’s prices on the downside.

Furthermore, the rising US-China tensions after the US government attempted to block the WeChat application’s downloading in the United States but failed to do so. These ongoing tensions between the world’s two largest economies gave a boost to safe-haven appeal and exerted pressure on the Australian dollar that dragged the AUD/USD pair on Friday.


The AUD/USD pair is trading with a selling bias at 0.7303 level, having formed a double top resistance at 0.7303 level. Seems like a good time to short the pair below 0.7303 level to capture quick 35/40 pips. Check out a trade plan below… 

Entry Price – Sell 0.7314

Stop Loss – 0.7354

Take Profit – 0.7274

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Managed To Keeps Winning Streak – Buy Signal In Play! 

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the renewed Sino-American trade optimism also helped the market risk tone, which underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.  

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the renewed Sino-American trade optimism also helped the market risk tone, which underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.  

Today in the early European trading session, the AUD/USD currency pair extended its previous session bullish bias and took further bids around a weekly high 0.7329 level, mainly due to the risk-on market sentiment, backed by the on-going optimism over treatment for the highly infectious coronavirus. Moreover, the renewed Sino-American trade optimism also helped the market risk tone, which underpinned the Australian dollar’s perceived risk currency and contributed to the currency pair gains.  

Apart from this, the broad-based U.S. dollar selling bias, triggered by the cautious mood of traders ahead of the Federal Open Market Committee (FOMC) meeting, also supported the currency pair. The AUD/USD currency pair is currently trading at 0.7329 and consolidating in the range between 0.7288 – 0.7330.

The market trading sentiment recently got the lift after the positive news from the University Of Pittsburgh School Of Medicine, suggesting that the experts produced the strongest antibody component for the coronavirus, tested over animals. Meanwhile, the Trump administration stepped back from its plans for importing cotton and tomato products from China’s Xinjiang region. This, in turn, boosted further the market trading tone. 

Furthermore, the U.S. and China’s positive data, which suggests gradual recoveries in global economics, also boosted the market trading tone. Detail Suggested, China’s Industrial Production and Retail Sales surpassed forecasts for August, the U.S. NY Empire State Manufacturing Index also recovered to 17.00 and pleased the optimists. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains.  

On the contrary, the uncertainties over the much-awaited fiscal package remain on the play as both sides do not show any clues on it. Meanwhile, the rising COVID-19 cases globally continue to fuel worries concerning the global economic outlook. This gloomy factor could be considered as the key factor that cap further gains in the currency pair.

Looking ahead, the market traders will keep their eyes on Japan’s trade numbers and Aussie housing data. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting, scheduled to take place on the day. Meanwhile, New Zealand’s Current Account and the Pre-Election Economic and Fiscal Update (PREFU) will also key to watch. All in all, the updates surrounding the Brexit, virus, and US-China tussle will not lose their importance. 


The AUD/USD pair continues to encounter resistance at the 0.7344 mark, and an upward crossover of 0.7344 mark can drive bullish bias unto 0.7412 and 0.7450 level today. On the downside, the support continues to linger at 0.7245 and 0.7149 level. Bullish bias appears powerful today; nevertheless, the focus will remain on the U.S. FOMC and Fed Fund Rate today. 

Entry Price – Buy 0.73241

Stop Loss – 0.72841

Take Profit – 0.73641

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Violates Double Top – Brace for Buying Trade 

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The AUD/USD currency pair failed to keep its Asian session bullish momentum and dropped below the 0.7270 level despite the welcome prints of second-tier Aussie data and weaker U.S. dollar. As we know, these factors initially gave support to the currency pair, but unfortunately, the currency pair failed to keep its bullish momentum into the European session. However, the reason for the bearish sentiment around the currency pair could be associated with the on-going tussle between the US-China, which leads to the decline in U.S. stock’s future. In turn, this undermined the perceived risk currency Australian dollar and contributed to the currency pair losses.

The U.S. stock futures failed to keep its Asian session positive tone and trimmed its previous gains, possibly due to the renewed conflict between the U.S. and China. On the contrary, the investors continued to cheer the hopes over a possible vaccine and treatment for the highly infectious coronavirus. These hopes came after the comments from Goldman Sachs that the Pfizer’s candidate vaccine could be approved as early as October. Also supporting the market tone was the news that Tokyo will ease its coronavirus (COVID-19)-led lockdown restrictions by one notch. This might help the currency pair to limit its deeper losses.

As in result, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. Furthermore, the U.S. dollar losses could also be associated with the cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses become the key factors that capped further downside momentum in the currency pair.

Moving ahead, the market traders will keep their eyes on the European Central Bank (ECB) decision and headlines from London for intermediate moves ahead of 16:30 GMT speech by BOC’s Macklem. Furthermore, the U.S. Initial Jobless Claims’ weekly release, which is expected 846K versus 881K prior, will also be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the currency pair.

The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this, the next resistance can be found around 0.7301 level.



The AUD/USD pair is trading slightly bullish in the wake of retracement at 0.7225 level. The AUD/USD pair may find immediate support around 0.7190 level, and violation of this level can open further room for selling until the 0.7139 level. On the higher side, the AUD/USD may find resistance at 0.7249 level, and above this the next resistance can be found around 0.7301 level.

Entry Price – Buy 0.72957

Stop Loss – 0.72557

Take Profit – 0.73357

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Set to Complete 61.8% Fibonacci Retracement – Signal Update! 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

Today in the early European trading session, the AUD/USD currency pair Managed To stop Its Previous Session losing streak and drew some modest bids on the back of the upbeat China trade numbers, which came out better than forecast. Also, capping the losses could be the light calendar in Asia amid the U.S. holiday. On the contrary, the fresh risk aversion wave, triggered by the US-China renewed tussle and Brexit issue, turned out to be a major factor that kept the lid on any further gains in the currency pair. 

In the meantime, the broad-based U.S. dollar strength backed by Friday’s released upbeat U.S. jobless rate and wage growth data also kept the currency pair under pressure. The AUD/USD currency pair is currently trading at 0.7285 and consolidating in the range between 0.7270 – 0.7298.

At the data front, China’s Trade Balance for August, in Yuan terms, arrived in at CNY416.59 billion against CNY196.21 billion expected and CNY442.23 billion last. Meanwhile, August exports arrived in at +11.6% vs.+2.1% expected and +10.4% last while imports arrived at -0.5% vs. -0.7% expected and +1.6% prior. 

As far as the USD terms’ data is concerned, the headline Trade Balance improved past-$50.5B forecast to $58.9B. The Exports increased by 9.5% versus 7.1% prior, whereas Imports eased to -2.1% against +0.1% expected and -1.4% prior. However, the Chinese exports and big surplus beat initially impressed the AUD bulls and became the key factor that kept the currency pair from losses.

Elsewhere, the market risk tone has been sluggish since the day started, possibly due to the renewed conflict between the U.S. and China. The war between both parties fueled after the U.S. punished Chinese technologies and diplomats by imposing several sanctions that have repeatedly irritated the Dragon Nation. In turn, China’s Foreign Ministry advised the U.S. to stop abusing the domestic companies on the day. 

As per the keywords, “Without evidence, the U.S. has abused national power to take measures on Chinese companies.” Apart from this, previous Chinese warnings to cut the U.S. debt buying also heated up an already intensified tussle. 

Also weighed on the risk sentiment is the rising coronavirus cases in Asian and Europe, fueling worries about the global economic recovery. As per the report, the coronavirus cases crossed 27 million cases as of September 7, as per the Johns Hopkins University data. However, these fears also kept the traders cautious.

At the USD front, the broad-based U.S. dollar managed to maintain its bullish trend and remain on the day’s bullish track. However, the U.S. dollar gains were supported by the upbeat U.S. labor market report, which revealed a slipped in the unemployment rate and a rise in U.S. Treasury yields. Thus, the gains in the U.S. dollar kept the currency pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies rose by 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. Whereas, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.


The AUD/USD pair is trading sideways over an immediate support level of 0.7277 level. Closing of candles above this level may drive upward movement in the market until the 0.7325 level. A bearish breakout of 0.7276 level may drive selling until the 0.7249 level today.

Entry Price – Buy Limit 0.72463

Stop Loss – 0.72063

Take Profit – 0.72863

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Stopped Losing Streak – Bullish Correction in Play!  

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the European trading session, the AUD/USD currency pair succeeded in stopping its previous session losses and took fresh bids above the 0.7280 level as the U.S. stock futures turned positive. The fresh gains were backed by the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which eventually underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

On the contrary, the broad-based U.S. dollar ongoing strength, backed by the upsurge in the U.S. Treasury bond yields, kept a lid on additional currency pair gains. Also, capping the quote upside momentum could be the ongoing US-China tussle. The AUD/USD currency pair is currently trading at 0.7283 and consolidating in the range between 0.7251 – 0.7288. Moving on, the market traders seem reluctant to place any strong position ahead of U.S. Nonfarm Payrolls.

It is worth recalling that the market trading sentiment was supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus. Also, supporting the trading sentiment factor could be the ongoing chatters between the House of Speak Nancy Pelosi and Treasury Secretary Steve Mnuchin concerning the U.S. stimulus package. Tthe House of Speak Nancy Pelosi and Treasury Secretary Steve Mnuchin agreed on the stop-gap funding before the current bill expires on September 30. Also supporting the upticks in U.S. stocks future could be the Fed policymakers’ clears view of keeping the monetary policy easy and without doubt, unlike others. In turn, this underpinned the perceived risk currency Australian dollar and extended some support to the currency pair.

On the contrary, the renewed conflict between the U.S. and China fueled after the Dragon Nation warned the U.S. to cut its American debt holdings. This step has taken by China after the Trump administration announced extra hardships for Beijing diplomats. This eventually exerted downside pressure on the trading sentiment and capped further upside momentum in the U.S. stock futures.

At the USD front, the broad-based U.S. dollar succeeded in gaining positive traction and edged higher on the day amid mixed sentiment. The U.S. dollar gains were further bolstered by the ongoing upsurge in the U.S. Treasury bond yields. However, the U.S. dollar’s modest gains became the major factor that capped the pair’s upside momentum. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of currencies inched up at 92.47 by 10:23 PM ET (2:23 AM GMT).

Moving on, the August month’s employment data for the U.S., which is scheduled to release at 12:30 GMT, will be key to watch on the day. The headline U.S. Nonfarm Payrolls (NFP) data is expected to drop to 1400K against 1763K prior, while the Unemployment Rate may fall from 10.2% previous to 9.8%. As well as, the coronavirus (COVID-19) updates, U.S. stimulus news, and the US-China tensions could not lose their importance on the day.


The AUD/USD pair traded distinctly bearish to linger at 0.7268 mark, achieving critical support at 0.7250 and resistance at 0.7277. Breach of this area may define the next move in the AUD/USD pair. On the higher side, the AUD/USD pair may encounter resistance at 0.7340 and support at 0.7225. The trend will be concluded following the announcement of NFP figures later through the U.S. session. 

Entry Price – Buy 0.7285

Stop Loss – 0.7245

Take Profit – 0.7325

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

Categories
Forex Signals

AUD/USD Bullish Correction Completed – Brace for Selling! 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

The AUD/USD failed to stop its previous session losing streak and dropped below 0.7300 level due to the broad-based U.S. dollar strength, buoyed by the Tuesday’s better-than-expected U.S. manufacturing data. Also weighing on the currency pair was the downbeat data from Australia and China. On the contrary, the market risk-on sentiment, supported by the vaccine hopes and hopes of further U.S. stimulus, becomes the key factor that helped the currency pair limit its deeper losses. 

At the press time, the AUD/USD is currently trading at 0.7302 and consolidating between 0.7297 and 0.7340. Moving on, the currency pair may find some support as the ongoing rally in the U.S. dollar seems to be short-lived as the doubts remain about the U.S. economic recovery amid the weaker than expected ADP report. Australia’s July month Trade Balance registered another fundamental disappointment for the Australian policymakers. Australia’s July month Trade Balance dropped below 5400M flash forecasts and 8202M prior to the data front. Details suggest that the Imports increased past-1.0% to 7.0% while Exports fell to -4.0% from +3.0% prior.

Across the ocean, China’s Caixin Services PMI rose to 54.00 versus 50.4 expected and 54.1 before August. The same push the composite PMI data to 55.1 versus 54.5 prior. As a result of mixed data from the Aussie and China, the AUD/USD currency pair extends its bearish trajectory for the 3rd-day in a row.

However, the reason for the risk-on market sentiment could be associated with the probabilities of further stimulus and hopes of the coronavirus (COVID-19) vaccine, which tends to underpin the perceived risk currency Australian dollar and helps the pair to limit its deeper losses. It is worth reporting that the AstraZeneca continues its final tests for the coronavirus vaccine. Meanwhile, around 76 rich countries, the global policymakers join to help for the vaccine developments and distribution.

On the contrary, the two biggest economies are at loggerheads after the latest headlines concerning additional sanctions on China diplomats by the U.S. Also fueling the tussle could be the reports suggests Beijing’s embassy in America criticized harshly by the U.S. However, these gloomy headlines could also be considered as the key factor that has been weighed on the Aussi pair.

Despite the risk-on market sentiment and downbeat U.S. data, the broad-based U.S. dollar flashing green on the day supported by Tuesday better-than-expected PMI data, which fueled the hopes of the U.S. economy. However, the U.S. dollar’s bullish bias could be short-lived as doubts remain about the U.S. economic recovery amid Wednesday weaker than expected ADP report. However, the gains in the U.S. dollar became the key factor that kept the currency pair lower. Whereas, the U.S. Dollar Index that measures the greenback against a bucket of 6-major currencies rose by 0.03% to 92.977.

Looking ahead, the market traders will keep their eyes on final German and Eurozone PMI readings, which is scheduled for release on the day. As well as, the Friday’s Nonfarm Payrolls (NFP) will also be key to watch. In the meantime, the updates surrounding the fresh Sino-US tussle, this time over the South China Sea, and the coronavirus (COVID-19) updates, could not lose their importance.


The AUD/USD is trading at 0.7317, having violated the double bottom support level of 0.7337 level. Closing of candles below this level may drive sharp selling until 0.7289 and even below this until 0.7275. Conversely, a bullish crossover of 0.7369 may drive intense buying until the 0.7385 level. Bearish bias may dominate today.

Entry Price – Sell 0.7296

Stop Loss – 0.7336

Take Profit – 0.7256

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

Categories
Forex Signals

AUD/USD Breaksover Descending Triangle – Brace for Buying

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

Today in the early European trading session, the AUD/USD currency pair stopped its Asian session losing streak and took further bids at the high around closer to 0.7200 marks mainly due to the upticks in the equity market, supported by the latest optimism over treatment for the highly infectious coronavirus. This, in turn, underpinned the perceived risk currency Australian dollar and contributed to the currency pair gains. 

The broad-based U.S. dollar selling bias, triggered by the uncertainty over the next round of the U.S. fiscal stimulus measures, also favored the currency pair buyers. The upbeat market sentiment also drags the U.S. dollar lower. In the meantime, the receding cases in Victoria and the U.S. also helped the currency pair. 

On the contrary, the on-going conflict between the US-China and virus woes in Europe became the key factor that capped further upside for the currency pair. The AUD/USD is currently trading at 0.7185 and consolidating in the range between 0.7152 – 0.7187.

The global market risk sentiment remained well supported by optimism over a possible coronavirus vaccine. These vaccines’ hopes were fueled after the U.S. Food & Drug Administration (FDA) approved the use of blood plasma from recovered patients as a treatment option. The sentiment around the market was also boosted after the reports that the U.S. is considering by-passing normal U.S. regulatory standards to fast-track an experimental coronavirus vaccine from Britain.

Apart from this, the market trading sentiment is rather unaffected by the renewed uncertainties over the much-awaited fiscal package, which has fueled worries over the U.S. economic recovery. It is worth reporting that the U.S. Congress previously showed readiness for reaching an agreement over the latest stimulus measures, but afterward, he took a U-turn from his positive statement. 

At the US-China front, the tussle between the world’s two biggest economies, US-China further intensified following U.S. President Trump raised the possibility of decoupling the U.S. economy from China, a major purchaser of the U.S. goods. These gloomy headlines are playing a negative role in capping the further upside in the currency pair.

At the USD front, the broad-based U.S. dollar remained depressed on the day in the wake of the uncertainties over the next round of the U.S. fiscal stimulus measures. As well as, the weaker tone surrounding the U.S. Treasury bond yields in the wake of upbeat market sentiment further pressured the U.S. dollar and contributed to the pair’s gains. Whereas, the U.S. Dollar Index that tracks the USD against a bucket of other currencies was down, inching down to 93.102.

Looking forward, the market traders will focus on the upcoming speech of U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium on Thursday. As well as, the USD moves and coronavirus headlines will also closely followed ahead as they could play a key role.


The AUD/USD is taking a bullish turn at 0.7190 mark, passing over 50 EMA resistance mark of 0.7180. On the upper side, the AUD/USD may surge unto 0.7216 mark. The 50 EMA is presently serving as s support, though the mystery is whether to go for buy or sell? We are going long on Aussie, and here’s a trading signal.

Entry Price – Buy 0.71848
Stop Loss – 0.71448
Take Profit – 0.72248
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Breaks Below Upward Channel – Quick Update On Signal! 

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The AUD/USD pair closed at 0.72426 after, a high of 0.72643 and a low of 0.72086. Overall, the movement of the AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its gains, rising for the third consecutive day on Tuesday, as Australia’s central bank does not see any need to ease the policy further.

The Reserve Bank of Australia held its cash rates at a record low of 0.25% in August, after cutting them in March. In its August policy meeting, the bank said that the existing measures were operating broadly, as anticipated, with an economic recovery underway in most of the country.

The minutes of the August policy meeting, held on August 4, revealed that the recovery was slower than earlier projections expected, because of the coronavirus outbreak in the state of Victoria, as this had a major impact on the economy.

Meanwhile, the Governor of the RBA, Philip Lowe, said that there was a need for greater fiscal spending, to revive Australia’s ailing economy, as there were limits to what monetary policy could do. Members of the RBA considered fiscal and monetary support necessary, to support the labor market, as the unemployment rate was at a 22-year high, and wage growth was at an all-time low.

The minutes revealed that almost 30% of Australia’s working-age population was relying on the government’s COVID-19-related welfare payments.

The RBA said that the net positive fiscal impact from the expected change in Australian government finances was equivalent to around 4% of the GDP in 2019-20, and 5% in 2020-21. The AUD/USD pair continued to post gains, after the release of the minutes, reaching a level of above 0.72500.

Furthermore, the weakness of the broad-based US dollar also added to the gains of the AUD/USD pair, as the delay in the next US stimulus aid package was weighing on the local currency. The US Dollar Index fell to a 2-year low, close to 92.2, and the US Treasury yields also slumped, weighing heavily on the US dollar.

The weak US dollar then added strength to the AUD/USD pair, supporting the bullish movement on Tuesday. However, in the late American session, the pair lost some of its early gains of the day, because of the positive US data.

The Building Permits from the US in July rose to 1.50M, compared to the expected 1.33M, lending support to the US dollar. The Housing Starts also rose to 1.50M, in contrast to the anticipated 1.23M, pushing the US dollar higher, and weighing on the AUD/USD pair, which lost some of its early gains of the day as a result.


The AUD/USD pair continues to trade sideways, within a narrow trading range of 0.7257 – 0.7230. The buying and selling opportunities can be seen within this range, but when the minutes of the FOMC meeting are released, the AUD/USD could exhibit either a bearish or a bullish breakout. On the higher side, the next resistance could be found at around 0.7280, while support holds at 0.7210. 

Entry Price – Sell 0.7168
Stop Loss – 0.7208
Take Profit – 0.7128
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Trades Descending Triangle – 50 EMA Crossover Plays!

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The AUD/USD currency pair extended its early-day gains and rose to a session high closer to the 0.7000 regions. However, the reason for the bullish bias in the currency pair could be attributed to the modest upbeat trading sentiment backed by the vaccine success, which underpinned the perceived riskier Australian dollar and contributed to the currency pair gains.

The mild positive tone around the global equity markets undermined demand for the safe-haven U.S. dollar and prolonged some support to the perceived riskier Australian dollar. However, the risk-on market sentiment was being supported by the success of the vaccine. Although, the hopes of vaccine success increased after Moderna’s potential vaccine produced a “robust” immune response in all 45 patients in its early-stage human trials, providing more promising data that the vaccine may give some protection against the coronavirus. Moreover, the risk-on market sentiment was further supported by the hope of additional stimulus by governments worldwide, partly which overshadowed concerns about the ever-increasing coronavirus case and worsening US-China relations.

Talking about the worsening relation among the world’s top two economies, the U.S. policymakers are considering imposing a travel ban on all Chinese Communist Party members. As per the White House Chief of Staff, Mark Meadows, the Trump administration is studying national security risks of TikTok, WeChat, and other apps that allow a foreign adversary to gather information on users. These U.S. statements could fuel tensions between China & U.S. disputes and weigh on AUD/USD currency pair.

As per data from Johns Hopkins University, in the latest numbers, more than 13.5 million people across the world have been diagnosed with COVID-19. However, the virus-related report has raised concerns among investors that the virus was far from over, and these concerns dampened hopes of economic recovery. The coronavirus concerns considered as one of the key factors that capped the currency pair further gains.

In the absence of the major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. The traders will keep their eyes on the virus updates and news concerning China. Though, the U.S. Michigan Consumer Sentiment Index, expected 79.00 against the previous 78.1, could offer intermediate moves.


The AUD/USD has crossed below 50 periods EMA at a level of 0.6975, and below this, the next support is expected to be found around a level of around 0.6960. Since the AUD/USD has formed a downward channel, we can expect a bearish breakout in the pair, leading Aussie dollar towards the next support area of 0.5950 and 0.5935. But in any case, the bullish breakout of 0.6993 level will be bad for our signal, and we may end up at stop loss. Check out the signal below…

Entry Price – Sell 0.69808

Stop Loss – 0.70208

Take Profit – 0.69408

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

AUD/USD Tests 50 EMA – Quick Update on Signal!

During Friday’s early European trading session, the AUD/USD currency pair failed to stop its previous session losing streak and was depressed near 0.6935 level of broad-based U.S. dollar strength triggered by the worst situation coronavirus. The risk-off market sentiment backed by the multiple factors weakened the Australian dollar’s perceived riskier and contributed to the currency pair gains. At the moment, the AUD/USD currency pair is currently trading at 0.6947 and consolidating in the range between 0.6924 – 0.6966. However, the investors seemed cautious to place any strong bids due to light trading on the day ahead.

During Friday’s early European trading session, the AUD/USD currency pair failed to stop its previous session losing streak and was depressed near 0.6935 level of broad-based U.S. dollar strength triggered by the worst situation coronavirus. The risk-off market sentiment backed by the multiple factors weakened the Australian dollar’s perceived riskier and contributed to the currency pair gains. At the moment, the AUD/USD currency pair is currently trading at 0.6947 and consolidating in the range between 0.6924 – 0.6966. However, the investors seemed cautious to place any strong bids due to light trading on the day ahead.

During Friday’s early European trading session, the AUD/USD currency pair failed to stop its previous session losing streak and was depressed near 0.6935 level of broad-based U.S. dollar strength triggered by the worst situation coronavirus. The risk-off market sentiment backed by the multiple factors weakened the Australian dollar’s perceived riskier and contributed to the currency pair gains. At the moment, the AUD/USD currency pair is currently trading at 0.6947 and consolidating in the range between 0.6924 – 0.6966. However, the investors seemed cautious to place any strong bids due to light trading on the day ahead.

The ever-increasing cases of coronavirus in Australia’s most populous states and the United States overshadowed V-shaped global economic recovery prospects. As in result, Australia’s Prime Minister decided to re-impose lockdowns and border restrictions to contain the spread of coronavirus cases. As per the latest report, the U.S. cases crossed a total of 3.0 million cases and reported over 60,000 cases on Thursday. Furthermore, over 12.2 million cases and 550,000 deaths globally were reported as of July 10, as per John Hopkins University data. Most of the states like Florida, Texas, and California, reported a record-high number of new cases on Thursday.

However, the gloomy outlook was further bolstered by the ongoing tussle between the United States and China. The conflict between both parties was further fueled after Trump administration member Mike Pompeo announced visa restrictions on the People’s Republic of China (PRC) government and Chinese Communist Party officials over creating hardships for foreigners to visit Tibet. The United States imposed another sanction on the highest-ranking Chinese official over alleged human rights abuses against the Uighur Muslim minority, which exerted some downside pressure on the risk-tone and contributed to the currency pair declines.

As in result, the broad-based U.S. dollar flashed green and took bids on the day as investors preferred the safe-haven asset mainly due to concerns about the mounting coronavirus cases. However, the gains in the U.S. dollar kept the pair under pressure. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies gained 0.13% to 96.802 by 10:06 AM ET (3:06 AM GMT). As well as, the gain in the U.S. dollar was further supported by the reports that the U.S. Supreme Court ruled out that Democratic-led congressional committees were allowed to obtain U.S. President Donald Trump’s financial records, as reported by Reuters. 

On the positive side, the Japanese Prime Minister (PM) Shinzo Abe and Australian PM Scott Morrison talked yesterday via a virtual summit. They showed readiness to accelerate preparations to resume limited travel among business people. This news helped the AUD/USD currency pair to limit its deeper losses.


The market participants will keep their eyes on the trade/virus updates due to the lack of major economic data today. As well as, the sentiment on the Asian indices and USD dynamics will be closely followed for the pair’s next directions. In the meantime, the U.S. Producer Price Index (PPI) will be key to watch. 

Daily Support and Resistance

S1 0.6847

S2 0.6906

S3 0.6943

Pivot Point 0.6965

R1 0.7003

R2 0.7024

R3 0.7083

The AUD/USD tested the double bottom pattern at 0.69300 level before bouncing off to 0.6965 level. On the hourly timeframe, the AUD/USD pair is testing the 50 periods EMA at a 0.6960 level, and the closing of candles below 0.6956 suggests the chances of selling trend until the level of 0.6930. The MACD is still in the buying zone; however, the 50 periods EMA is likely to push the pair lower until the level of 0.6930. Follow a quick trade plan below..

Categories
Forex Signals

AUD/USD Soars Amid Symmetric Triangle Pattern & 50 EMA Crossover! 

The AUD/USD pair was closed at 0.68886 after placing a high of 0.69766 and a low of 0.68332. Overall the movement of AUD/USD pair remained bearish throughout the day. The decreased risk appetite after increasing fears of the second wave of coronavirus in China and renewed lockdown restrictions to hold the spread of the virus again in Beijing. 

The AUD/USD pair was closed at 0.68886 after placing a high of 0.69766 and a low of 0.68332. Overall the movement of AUD/USD pair remained bearish throughout the day. The decreased risk appetite after increasing fears of the second wave of coronavirus in China and renewed lockdown restrictions to hold the spread of the virus again in Beijing. 

The AUD/USD pair was closed at 0.68886 after placing a high of 0.69766 and a low of 0.68332. Overall the movement of AUD/USD pair remained bearish throughout the day. The decreased risk appetite after increasing fears of the second wave of coronavirus in China and renewed lockdown restrictions to hold the spread of the virus again in Beijing. 

This weighed on risk perceived Australian dollar and dragged the AUD/USD pair. The Reserve Bank of Australia on Tuesday issued its monetary policy report and provided a relatively positive outlook of the economy than its major counterparts. Furthermore, Governor Philip Lowe and the committee said that the Australian economy was facing the biggest economic contraction since the 1930s, and it was possible that the downturn would be shallower than earlier expected.

RBA affirmed that the target of 3-year yields would be maintained until progress towards full employment and inflation target of the central bank was made. Bank also acknowledged that the infection rates were declining in many countries, and if this were to continue, it could have made the global recovery faster.

On the data front, the Housing Price Index for the quarter decreased from 2.5% forecast to 1.6% and weighed on Aussie. The weaker Australian dollar moved the pair AUD/USD in reverse direction on Tuesday. On the other hand, better than expected economic data from the United States pulled the pair further on the downside. The Retail Sales for May surged by 17.7% on Tuesday from the expected 7.9% and supported the US dollar.

Strong US dollar weighed on AUD/USD pair and pair lost its previous day’s gains and ended its day with a bearish candle. On the other hand, the escalating tensions between India and China over the disputed border after a fight between both nation’s soldiers also weighed on a china-proxy currency – Aussie.


The AUD/USD is supported above 0.6850 level, and closing of recent Doji candle above 0.6850 is suggesting the chances of buying in AUD/USD. On the higher side, resistance is likely to be found around 0.6960 level. Bullish bias seems dominant today.

Entry Price – Buy 0.68865

Stop Loss – 0.68465    

Take Profit – 0.69265    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Categories
Forex Signals

AUD/USD Bearish Engulfing Signals Selling Bias – Brace for Quick Short Trade!  

The AUD/USD pair was closed at 0.68540 after a high of 0.70039 and a low of 0.68392. Overall the movement of AUD/USD pair remained bearish throughout the day. The risk perceived Aussie posted losses on Thursday in risk-off market sentiment, which was caused by the gloomy outlook of the US economy by Federal Reserve in its monetary policy meeting. The FED in its report said that the impact of coronavirus could last for a more extended period of time than Fed expected, and recovery would also be slower than expected.

The AUD/USD pair was closed at 0.68540 after a high of 0.70039 and a low of 0.68392. Overall the movement of AUD/USD pair remained bearish throughout the day. The risk perceived Aussie posted losses on Thursday in risk-off market sentiment, which was caused by the gloomy outlook of the US economy by Federal Reserve in its monetary policy meeting. The FED in its report said that the impact of coronavirus could last for a more extended period of time than Fed expected, and recovery would also be slower than expected.

The AUD/USD pair was closed at 0.68540 after a high of 0.70039 and a low of 0.68392. Overall the movement of AUD/USD pair remained bearish throughout the day. The risk perceived Aussie posted losses on Thursday in risk-off market sentiment, which was caused by the gloomy outlook of the US economy by Federal Reserve in its monetary policy meeting. The FED in its report said that the impact of coronavirus could last for a more extended period of time than Fed expected, and recovery would also be slower than expected.

The GDP contraction expectations also increased to 6.5% for this year, along with the unemployment rate expectations towards 9.3%. Risk- appetite disappeared after that announcement from the market, and investors started buying safe-haven currency US dollars. The higher demand for the US dollar exerted pressure on AUD/USD pair, and hence par started to fall on Thursday. On the data front, at 6:00 GMT, the MI Inflation Expectations from Australia were reported as 3.3% in May compared to April’s 3.4%.

On the American front, the jobless claims decreased to 1.542M from 1.550 M of forecast and supported the US dollar. The PPI for May also surged to 0.4% against 0.1% of expectations and added in the strength of the US dollar, which eventually dragged the currency pair AUD/USD on the downward track to post daily losses.

Furthermore, the Australian Prime Minister, Scott Morrison, said that he would not be intimidated by the coercion moves from Beijing. Australia’s export trade to China is huge, with around a third of everything Australia export goes to China. The relationship between China and Australia was disturbed after Morisson called for an international inquiry on the origin of coronavirus, which was first reported in China. In response to what Beijing slapped tariffs on Australian Barley, ad threatens to do more, which ultimately affected Aussie demand in the market.


On the US-China front, the tension remained there with the recent criticism on Federal Reserve’s latest monetary policy decision by China that the massive liquidity stimulus by Fed will increase the debts of the US government and also the world’s debt. In response to this, the US Vice President Mike Pence said that the US would remain tough on a trade deal, which raised fears about a potential trade war between the two biggest economies.

The increased tension between the US & China weighed on Aussie due to its relationship with the second-largest economy. China-Proxy Aussie got some pressure after the increased fears of US-China tussles and moved the pair AUD/USD lower on Thursday.

We are taking a selling trade below a double top resistance area of 0.6900 level; below this, the AUD/USD pair is likely to drop, especially due to bearish engulfing candle, which can be seen in the chart above. The more substantial bearish bias can lead AUD/USD pair lower towards the next support level of 0.6845 level today. 

Entry Price – Sell 0.68796    

Stop Loss – 0.69196    

Take Profit – 0.68396    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$450/ +$450

Profit & Loss Per Micro Lot = -$45/ +$45

Categories
Forex Signals

AUD/USD Ascending Triangle Breakout – Quick Update on Trading Signal! 

The AUD/USD currency pair flashed green and succeeded to break the hurdle above 0.7000 while taking rounds around the 0.6995 level. However, the uptick upticks in the currency pair could be attributed to the broad-based U.S. dollar selling bias. The upticks in the pair were further bolstered by the risk-on market sentiment backed by the multiple factors, which eventually underpinned the risker assets like the Australian dollar. 

The AUD/USD currency pair flashed green and succeeded to break the hurdle above 0.7000 while taking rounds around the 0.6995 level. However, the uptick upticks in the currency pair could be attributed to the broad-based U.S. dollar selling bias. The upticks in the pair were further bolstered by the risk-on market sentiment backed by the multiple factors, which eventually underpinned the risker assets like the Australian dollar. 

The AUD/USD currency pair flashed green and succeeded to break the hurdle above 0.7000 while taking rounds around the 0.6995 level. However, the uptick upticks in the currency pair could be attributed to the broad-based U.S. dollar selling bias. The upticks in the pair were further bolstered by the risk-on market sentiment backed by the multiple factors, which eventually underpinned the risker assets like the Australian dollar. 

The risk-on market sentiment was bolstered by the headline NFP, which showed that the U.S. economy unexpectedly registered 2.509 million jobs in May as compared to the forecasted figure, which pointed a fall of 8 million jobs. The improvement in the jobless rate, which just dropped to 13.3% as against a big jump expected by 19.8% from 14.7% in April, also added in the risk appetite in the market.

Moreover, the upbeat trading sentiment could also be attributed to the hopes for a sharp V-shaped recovery for the global economy, which ultimately underpinned the perceived riskier of Aussie and contributed to the currency pair’s gains. Elsewhere, the risk-on market sentiment was further bolstered by the expectations that the worst part of the coronavirus pandemic was over.

At the USD front, the broad-based U.S. dollar erased its previous session gains and reported losses on the day as investors withdrew their money from the safe-haven assets after the U.S. released a better-than-expected employment report on Friday which eventually contributed to the pair’s gains. Whereas, the U.S. dollar index, which tracks the greenback against a basket of six other currencies, was largely flat at 96.888, having dropped nearly 3% over the last month.


On the negative side, the Australian dollar was recently pressurized by the worsening relationship between close trade partners China and Australia. Although, the Dragon Nation blamed Australia for supporting racial discrimination against Asians, which exerted some downside pressure on the Aussie currency.

Technically, the Aussie has formed an ascending triangle pattern which was supporting the AUD/USD pair around 0.6970 along with resistance at 0.7002. Bullish trend continuation can trigger buying until 0.7040 level today. The RSI and MACD are in support of buying, while the 50 EMA is also suggesting a bullish trend in Aussie. 

Entry Price – Sell 0.7009        

Stop Loss – 0.6969    

Take Profit – 0.7049    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$450/ +$450

Profit & Loss Per Micro Lot = -$45/ +$45

Categories
Forex Signals

AUD/USD Enters Overbought Zone – Brace for Retracement

The AUD/USD was closed at 0.68969 after placing a high of 0.68985 and a low of 0.67747. Overall the movement of AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its previous day’s gains and continued it’s 3 days bullish rally for another day and moved above 0.68900 level on Tuesday on the back of the risk-on market sentiment. The risk-sensitive Aussie gained a lot from the increased risk appetite of the market on Tuesday.

The AUD/USD was closed at 0.68969 after placing a high of 0.68985 and a low of 0.67747. Overall the movement of AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its previous day’s gains and continued it’s 3 days bullish rally for another day and moved above 0.68900 level on Tuesday on the back of the risk-on market sentiment. The risk-sensitive Aussie gained a lot from the increased risk appetite of the market on Tuesday.

The AUD/USD was closed at 0.68969 after placing a high of 0.68985 and a low of 0.67747. Overall the movement of AUD/USD pair remained bullish throughout the day. The AUD/USD pair extended its previous day’s gains and continued it’s 3 days bullish rally for another day and moved above 0.68900 level on Tuesday on the back of the risk-on market sentiment. The risk-sensitive Aussie gained a lot from the increased risk appetite of the market on Tuesday.

Apart from that, RBA gave an optimistic outlook and stated that the pandemic’s global state was improving. These optimistic comments from the Reserve Bank of Australia also helped Aussie gain traction against the US dollar.

The Bank stated that over the past months, the infection rates were declined in many countries, and the easing of restrictions was also reported from across the globe. If this activity continued, then recovery for the global economy was on its way, which was already supported by large fiscal packages and the significant easing in the monetary policies from central banks.

The Bank stated that the Australian economy was facing its biggest contraction since the 1930s, but there were some signs of encouragement as the rate of new infections was declined, and there are possibilities that the depth of downturn will be less than the expected. Restrictions were also eased, and the working hours were increased, which would lead towards consumer spending and recovery of the economy.

Furthermore, RBA chose not to purchase further bonds and remained at the same level towards bond-buying, which was decided in the last meeting.

Aussie gained traction in the market after positive hopes from RBA, and it was already on the wings due to substantial risk appetite in the market. Combined support from these factors added in the Australian dollar’s daily gains against the US dollar, and the pair AUD/USD rose above 0.6898 level.

Furthermore, on the data front, at 6:30 GM, the Current Account Balance from Australia showed a surplus of 8.4B against the forecasted 6.3B and supported the strength of Aussie. The Company Operating Profits for the quarter were also increased to 1.1% against 0.0% expected and supported Aussie. The US dollar was weak across the board due to risk-on market sentiment after easing lockdowns from across the globe and increased local tensions due to protests added in the gains of AUD/USD pair.


Technically, the AUD/USD prices are in the overbought zone at 0.6900, and soon we can expect bearish bias in the pair. The 50 EMA is left far behind at 0.6580, which clearly signifies that technically the prices should be trading around 0.6580 level. The MACD has also started closing smaller histograms, which are also suggestings that Aussie prices can go after 38.2% Fibonacci support.

Entry Price – Sell 0.69227    

Stop Loss – 0.69627    

Take Profit – 0.68827    

Risk to Reward – 1.00

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

Categories
Forex Signals

AUD/JPY Ascending Triangle Breakout – Update on Buy Signal! 

The safe-haven currency Japanese yen is losing it’s appeal in the wake of the risk-on market sentiment, which could be attributed to the latest optimism about the coronavirus vaccine. Moderna shared the positive results of its phase one experiment for its COVID-19 vaccine, which weakened the demand for the safe-haven Japanese yen and pushed the currency pair AUD/JPY higher. 

The safe-haven currency Japanese yen is losing it’s appeal in the wake of the risk-on market sentiment, which could be attributed to the latest optimism about the coronavirus vaccine. Moderna shared the positive results of its phase one experiment for its COVID-19 vaccine, which weakened the demand for the safe-haven Japanese yen and pushed the currency pair AUD/JPY higher. 

The safe-haven currency Japanese yen is losing it’s appeal in the wake of the risk-on market sentiment, which could be attributed to the latest optimism about the coronavirus vaccine. Moderna shared the positive results of its phase one experiment for its COVID-19 vaccine, which weakened the demand for the safe-haven Japanese yen and pushed the currency pair AUD/JPY higher. 

The drugmaker company Moderna said there was a high probability that this vaccine would provide protection against coronavirus disease. This news rose risk sentiment in the market and made the US dollar weaker. The broad-based US dollar reported modest losses on the day and dropped further from Friday’s 3-weeks high, which eventually held investors from placing any strong position and limited the upward trend of USD/JPY currency pair, which also triggered buying in AUD/JPY. 

The AUD/JPY pair traders did not give any significant attention to Tuesday’s dovish RBA meeting minutes; wherein they showed that the board members were prepared to increase bond purchases to control the economic fallout caused by the coronavirus pandemic. The buyers also ignored the intensifying tension between the US-China and fears about the second wave of coronavirus outbreak.


The AUD/JPY has violated the ascending triangle pattern, which can be seen on the 4-hour timeframe at 70.166 level. Bullish crossover of this level could drive more buying until the next resistance level of 71.35. The recent two candles on the 4-hour timeframe are suggesting odds of bullish trend continuation. Therefore, we have taken a buying position at 70.694 with a stop loss at 70.094 and take profit at 71.494.

Entry Price – 70.694 

Stop Loss – 70.094 

Take Profit – 71.494 

Risk to Reward – 1.33

Profit & Loss Per Standard Lot = -$420/ +$560

Profit & Loss Per Micro Lot = -$42/ +$56

Categories
Forex Market Analysis

AUD/USD Closes Below 0.6475 – Can Doji Pattern Drives Selling?

The AUD/USD pair was closed at 0.64041 after placing a high of 0.64526 and a low of 0.63934. Overall the movement of AUD/USD pair remained bearish throughout the day. The Aussie lost its ground on Wednesday on the back of US dollar strength across the board. The US dollar index rose by about 0.4% on Wednesday. The risk-off tone emerged in the market after the grim US employment report and the increasing tensions between US & China.

The AUD/USD pair was closed at 0.64041 after placing a high of 0.64526 and a low of 0.63934. Overall the movement of AUD/USD pair remained bearish throughout the day. The Aussie lost its ground on Wednesday on the back of US dollar strength across the board. The US dollar index rose by about 0.4% on Wednesday. The risk-off tone emerged in the market after the grim US employment report and the increasing tensions between US & China.

The AUD/USD pair was closed at 0.64041 after placing a high of 0.64526 and a low of 0.63934. Overall the movement of AUD/USD pair remained bearish throughout the day. The Aussie lost its ground on Wednesday on the back of US dollar strength across the board. The US dollar index rose by about 0.4% on Wednesday. The risk-off tone emerged in the market after the grim US employment report and the increasing tensions between US & China.

The US ADP employment report, which was forecasted to be declined by 20.5 Million, came in on Wednesday and showed that jobless people were count as 20.236 Million in the private sector only. This was caused by the impact of coronavirus over the economy due to the lockdown and shutdown of businesses.

Meanwhile, the US President Trump’s threat to China for imposing tariffs and canceling the phase-one trade deal has been favoring the US dollar against riskier assets like Aussie. The risk-off market tone weighed heavily to the pair AUD/USD on Wednesday.

On the other hand, the Retail Sales data from Australia for the month of March showed that the retail sales were recorded as 8.5% against the 8.2% forecasted, and this helped Aussie to pick some ground against the US dollar. Hence, Aussie abled to minimize Wednesday’s losses on the back of better than expected Retail Sales data.

Threats to China would affect Aussie more than any other country because of Australia’s trading relationship with China. That is why this pair was mostly affected even after better Retail Sales data from Australia.


On Thursday, the Trade Balance from Australia and the Unemployment claims from the United States would impact heavily on AUD/USD pair.

Technically, the AUD/USD prices have closed a Doji candle right below 0.6475 trading level, which can drive some selling in the market. A bullish breakout of 0.6475 level can trigger buying until the next resistance level of 0.6540. While the closing of candles below 0.6475 can keep sellers dominant until 0.615 and 0.6385 level today. Good luck! 

Categories
Forex Signals

AUD/USD Upward Trendline Supports – An Update on Buy Signal! 

The AUD/USD currency pair registered 5-day winning streak and continues to taking bids mainly due to the risk-on market sentiment. The pair has succeeded in recovering around 25-30 pips from the session lows and reached near the high end of its daily trading range at 0.6479 as most of the governments showing a willingness to reopen their economies. On the other hand, the latest pullback of the US dollar keeps the currency pair gains limited. 

Currently, the AUD/USD is trading at 0.6483 and consolidates in the range between the 0.6433 – 0.6483. Earlier in the day, the risk sentiment got support from the hopes of easing lockdowns in the major economies, including Australia, mainly due to the death toll dropped to its lowest level in the month. However, global scientists are still struggling to find the vaccine of the coronavirus (COVID-19).



Technically, the AUD/USD pair is gaining strong support around 0.6443, and closing of bullish engulfing pattern over this level may drive some buying in the Aussie dollar pair. The 50 EMA and MACD both are in support of the buying trend while an upward trendline on the 4-hour timeframe is suggesting chances of bullish trend continuation in the market. The Aussie dollar may continue trading bullish until next resistance area of 0.6536 and 0.65736. Hence, we opened a buying trade with an entry price of 0.64736.

Entry Price: Buy at 0.64736    

Take Profit .0.65736    

Stop Loss 0.64136    

Risk/Reward 1.67    

Profit & Loss Per Standard Lot = -$600/ +$1000

Profit & Loss Per Micro Lot = -$60/ +$100

Categories
Forex Signals

AUD/USD Ascending Triangle Breaksout– Time to Go Long! 

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.

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.

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    

Risk/Reward 1

Profit & Loss Per Standard Lot = -$700/ +$700

Profit & Loss Per Micro Lot = -$70/ +$70

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Forex Market Analysis

AUD/USD Currency Pair Seesaws Near 0.6900 As Traders Want More Clarity Regarding Sino-US Trade deal.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

Apart from the Sino-US trade deal, China also cheered Trump administration as the U.S. removed China from the currency manipulator list. Besides, the latest comments from the United States Senate leader McConnell who sent optimism that the latest United States–Mexico–Canada Agreement (USMCA) will pass the house on Friday, also supported the Aussie.

While the U.S. Vice President Mike Pence said that Phase 2 talks had already started and officials are struggling to resolve disputes. As in result, the risk-on sentiment improved in the market, and ultimately riskier assets also got support.

Looking forward, November month Home Loans and Investment Lending for Homes from Australia will be followed by China’sChina’s December month House Price Index to offer a fresh direction to the pair.

Daily Support and Resistance

S3 0.682
S2 0.686
S1 0.6881
Pivot Point 0.6899
R1 0.6921
R2 0.6939
R3 0.6978

Technically speaking, the AUD/USD is trading bullish at 0.6920 within a bullish channel, which is keeping the Aussie on the higher side. The AUD/USD pair is likely to find resistance around 0.6930, but the latest higher’s high pattern may drive more buying in the AUD/USD pair.

The MACD and RSI are crossing over in the bullish zone, and these may underpin the demand for AUD/USD. On the higher side, the bullish breakout of 0.6930 is likely to lead Aussie prices towards 0.6960, while support continues to stay around 0.6900. Let’sLet’s stay bullish above 0.6910 today. Good luck!

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Forex Assets

What Should You Know About AUD/USD Forex Pair

Firstly, the abbreviation of the AUDUSD currency pair is the Australian dollar and the US dollar. AUDUSD is a major currency pair. It is considered a major pair because it is AUD is paired with the US dollar, and also, this is one of the pairs where a huge volume of trading takes place. In AUDUSD, AUD is the base currency, and USD is the quote currency.

Firstly, the abbreviation of the AUDUSD currency pair is the Australian dollar and the US dollar. AUDUSD is a major currency pair. It is considered a major pair because it is AUD is paired with the US dollar, and also, this is one of the pairs where a huge volume of trading takes place. In AUDUSD, AUD is the base currency, and USD is the quote currency.

Firstly, the abbreviation of the AUDUSD currency pair is the Australian dollar and the US dollar. AUDUSD is a major currency pair. It is considered a major pair because it is AUD is paired with the US dollar, and also, this is one of the pairs where a huge volume of trading takes place. In AUDUSD, AUD is the base currency, and USD is the quote currency.

Understanding AUD/USD

The exchange value of AUDUSD represents the units of USD equivalent to one unit of AUD. In technical terms, it is the value of AUD against USD. For example, if the current market price of AUDUSD is 0.6960, then it means that it takes 0.6960 US dollars to buy 1 Australian dollar. Trading the AUDUSD currency pair is basically trading the Aussie (Australian dollar).

AUD/USD Specification

Spread

Spread is the difference between the bid price and the ask price. The spread usually varies based on account type. The spread on an ECN account and an STP account is as follows:

ECN: 0.7 | STP: 1.4

Fee

There is charged by brokers for every trade a trader takes. However, this depends on the type of forex account. Typically there is a fee in ECN accounts and zero-fee in STP accounts. Also, there is no exact value of fee on a single trade, as it differs from broker to broker.

Slippage

Slippage is the difference between the trader’s requested price and the real executed price. Slippage happens when the volatility of the market is quite high. It happens for market orders. Slippage can be in favor of the trader or against him. If entering and closing of the trade is done by market execution, then slippage happens twice. The slippage is usually between 0.5 and 3 pips. However, it depends on the broker’s execution speed as well.

Trading Range in AUD/USD

There are several timeframes to trade this currency pair. A day trader may pick the 1H, 4H, or the 1D timeframe, while a positional trader may opt for the weekly or the monthly. Apart from analyzing these timeframes, it is also necessary to know the volatility range in each of the timeframes. Knowing the pip movement range in each timeframe, one can assess their risk involved in each trade.

Below is the table, which represents the minimum, average, and maximum pip movement in each timeframe.

Note: The below values are an approximation from the Average True Range (ATR) indicator.

AUD/USD PIP RANGES 

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.
GBP/USD Cost as a Percent of the Trading Range

This is where the above values are put into play. By considering the volatility range in each timeframe, the cost (fee) for a single trade is measured in terms of a percentage for every mentioned timeframe. The basic idea to this is that the higher the percentage value, the higher is the cost of the trade.

The cost is calculated by considering three variables, namely, slippage, spread, and trading fee. And the sum of these values gives the total cost of each trade.

As mentioned earlier, the cost varies from the type of trading account. So, there will be variation in cost percentages as well.

ECN Model Account

Spread = 0.7 | Slippage = 2 | Trading fee = 1

Total fee = Spread + Slippage + Trading fee = 0.7 + 2 + 1

Total cost = 3.7 (pips)

STP Model Account

Spread = 1.4 | Slippage = 2 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 2 + 1.4 + 0

Total cost = 3.4

The Ideal Timeframe to Trade GBP/USD

The first observation that can be made from the above percentage values is that the minimum column has the highest percentages compared to other columns. This means that the cost is pretty high when the volatility of the market is too low irrespective of the timeframe. Contrarily, the costs are significantly less when the volatility of the market is high (max column). However, it is quite risky to trade when the market volatility is high though the fee is less. So, it is ideal during those times of the day when the market volatility is above average.

Note that volatility is not only one which decides on which is the best timeframe and time of the day to trade. The slippage value equally plays an important role, as well. For instance, if the slippage is made nil and the percentages are calculated, it is seen that the ranges drop down considerably. Hence, it is recommended to enter and exit trades using limit orders and not market orders.

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Forex Market Analysis

Daily F.X. Analysis, December 13 – Top Trade Setups In Forex – Borish Johnson’s Takes a Lead! 

Welcome to the last trading day of a week. The British Pound surged 2.1% to a six-month high of $1.3474. U.K. exit polls predicted that Prime Minister Boris Johnson’s Conservative party would win a majority in the House of Commons.

Welcome to the last trading day of a week. The British Pound surged 2.1% to a six-month high of $1.3474. U.K. exit polls predicted that Prime Minister Boris Johnson’s Conservative party would win a majority in the House of Commons.

Welcome to the last trading day of a week. The British Pound surged 2.1% to a six-month high of $1.3474. U.K. exit polls predicted that Prime Minister Boris Johnson’s Conservative party would win a majority in the House of Commons.

The euro advanced 0.5% to $1.1184. While the European Central Bank kept its monetary policy unchanged as expected, President Christine Lagarde said there are some indications of stabilization in the slowdown in the Eurozone’s growth and downside risks are less pronounced.

Economic Events to Watch Today

Let’s took at these fundamentals.

AUD/USD – Daily Analysis

The AUD/USD currency pair flashing green and hit the fresh one-month highs closer to the 0.690 levels. The AUD/USD currency pair is trading at 0.6909 and consolidates n the range between 0.6867 – 0.6910. The AUD/USD did not take any effect from the greenback strength and had continued its bullish rally.

The buying tone surrounding the China-proxy Aussie seemed rather unaffected by persistent risk regarding a phase one trade deal ahead of the December 15 deadline for the new U.S. tariffs on around $156 billion worth of Chinese imports.

At the Sino-US front, the U.S. President Donald Trump is yet to decide on the December 15 tariffs, though optimism continues on the back of news that negotiators were laying the groundwork for a preliminary deal to end the trade war.

Looking forward, Thursday’s U.S. economic docket, featuring the release of the Producer Price Index (PPI), will likely influence the USD price dynamics and produce some short-term trading opportunities during the early North-American session.

Daily Support and Resistance 

  • R3 0.7038
  • R2 0.6977
  • R1 0.6953

Pivot Point 0.6915

  • S1 0.6891
  • S2 0.6854
  • S3 0.6793

AUD/USD– Trading Tips

The AUD/USD pair is hanging around 0.6900, trading mostly bullish despite staying in the overbought zone. The traded higher further above the 0.6865 mark, the 61.8% Fibo retracement level of its November slide. In the 4-hour chart, the 20 SMA has hastened north over the bigger ones, all of them under the current mark. In contrast, the technical indicators lead to the north in overbought territory, without indications of bullish exhaustion. The rally is set to remain on a break over 0.6930, the next resistance.

GBP/USD– Daily Analysis

The British Pound surged 2.1% to a six-month high of $1.3474. U.K. exit polls predicted that Prime Minister Boris Johnson’s Conservative party would win a majority in the House of Commons.

The British Pound advanced piercingly overnight following the Conservative Party of Boris Johnson, who won a substantial majority in the General Election, and while the GBP has found a temporary resistance. Fundamentally, I do see the potential for further gains after sterling completes the bearish retracement. 

Besides this, the focus is on trade wars whereby an official announcement is expected to come from U.S. President Donald Trump. Bloomberg reported in recent trade that Trump would meet with his trade advisers at 19:30 GMT. U.S. Trade Representative Robert Lighthizer, White House economic adviser Kudlow and Treasury Secretary Mnuchin are expected to attend the meeting.

The latest reports are that the United States has considered offering a 50% reduction on $360 billion worth of Chinese imports, which raised market spirits, fulling higher benchmarks and gave an increase in U.S. Treasury bond yields. 

Daily Support and Resistance

  • S3 1.2969
  • S2 1.3071
  • S1 1.3133

Pivot Point 1.3173

  • R1 1.3235
  • R2 1.3276
  • R3 1.3378

GBP/USD– Trading Tip

The GBP/USD is presently consolidating around at1.3457, placing around 19-month high to 1.3515 during the U.S. session yesterday. The U.K. election exit polls foretelling a big win for the incumbent Prime Minister Boris Johnson. 

The GBP/USD pair’s 14-day relative strength index (RSI) is now floating around 80.47. I must say it’s the highest mark since January 2018. An above 70-reading shows overbought situations. Consider capturing retracement below 

USD/JPY – Daily Analysis

The USD/JPY currency pair was flashing green and climber from 108.60 to 109.30, hit the highest level for one-week mainly due to the latest trade headlines in which U.S. President Trump suggests an imminent deal with China. As of writing, the USD/JPY currency pair is currently trading at 109.36 and consolidates in the range between 108.45 – 109.44.

Fresh expectations regarding a deal between the United States and China on tariffs before the December 15 deadline supported equity markets. The Dow Jones reached new record highs and now is up 0.35%, off highs as the optimism eased. 

The United States bonds fell, pushing the yen lower across the board. The United States’ ten-year yield raised by more than 5% as it soared to 1.90% from 1.80% just in a few minutes. Other save haven assets like gold, also dropped significantly. 

More headlines related to trade may continue to flow, giving an impact on market sentiment. The rally of the USD/JPY was also supported by technical factors. The pair climbed above the 109.00 area, breaking a 7-day trading range. It also rose back above the 20-day moving average that stands at 108.80, level that could be seen now as the immediate support. The next support is the lower limit of the mentioned range around 108.40.

Daily Support and Resistance

  • S3 107.94
  • S2 108.28
  • S1 108.42

Pivot Point 108.61

  • R1 108.75
  • R2 108.94
  • R3 109.27

USD/JPY – Trading Tips

The USD/JPY rose 0.8% to 109.40 as investors’ risk appetite grew. The pair is heading towards the double top resistance level of around 109.700. Below this, the USD/JPY is likely to show a bearish correction of up to 38.2% level, which stays at 109.200. 

On the higher side, the bullish breakout of USD/JPY can lead the Japanese pair towards 110.300. The MACD and RSI are in support of the bullish trend. 

All the best!

Categories
Forex Market Analysis

Daily F.X. Analysis, December 11 – Top Trade Setups In Forex – Brace for FOMC & Fed Rate!

The forex market extends trading sessions mostly with the mixed sentiments as the trader’s eye remains on the Fed Policy decision and CPI rate today. The FOMC will publish its policy statement, and Chairman Powell will be giving his comments on the policy standpoint. Ahead of this event, the U.S. Dollar Index is down 0.22% at 97.45 on Tuesday, supporting the pair stay relaxed above the 0.6800 handles. 

The forex market extends trading sessions mostly with the mixed sentiments as the trader’s eye remains on the Fed Policy decision and CPI rate today. The FOMC will publish its policy statement, and Chairman Powell will be giving his comments on the policy standpoint. Ahead of this event, the U.S. Dollar Index is down 0.22% at 97.45 on Tuesday, supporting the pair stay relaxed above the 0.6800 handles. 

The forex market extends trading sessions mostly with the mixed sentiments as the trader’s eye remains on the Fed Policy decision and CPI rate today. The FOMC will publish its policy statement, and Chairman Powell will be giving his comments on the policy standpoint. Ahead of this event, the U.S. Dollar Index is down 0.22% at 97.45 on Tuesday, supporting the pair stay relaxed above the 0.6800 handles. 

Today, the trader’s focus will stay on the U.S. Monetary Policy and CPI rate from the U.S. Let’s brace for it. 

Economic Events to Watch Today

Let’s took at these fundamentals. 

AUD/USD – Daily Analysis

The AUD/UD currency pair flashing green and rose to 0.6835, mainly due to the upbeat data from Australia and unexpectedly higher inflation figures from China. As of writing, the AUD/USD pair is currently trading at 0.6814 and consolidates in the range between the 0.6800 – 0.6837.

The currency pair struggled to maintain its recovery rally due to a lack of progress surrounding the United States and China trade war and fell to a fresh weekly low of 0.6800 before recovering modesty.

The National Australia Bank’s Business Conditions Index remained unchanged at 4 in November, but it beat the expectations of 2. On the other, the annual House Price Index for the third quarter came in at -3.7%, after a second quarter’s figure of -7.4%, which supported the Australian Dollar.

In the second half of the day, the Wall Street Journal (WSJ) reported that the U.S. and China’s trade negotiators are working toward delaying the December 15 tariff hike. That gave a boost to the market sentiment and trade-sensitive AUD.

During the Asian session on Wednesday, Westpac Consumer Confidence Index from Australia, which is expected to drop to -0.7% in December from 4.5% in November, will be keeping under the eyes. 

Following in the day, the FOMC will release its policy statement, and Chairman Powell will be delivering his remarks on the policy outlook. Ahead of this event, the U.S. Dollar Index is down 0.22% at 97.45 on Tuesday, supporting the pair stay relaxed above the 0.6800 handles.

While reviewing Wednesday’s FOMC meeting, “after three cuts in a series, we expect the Fed to remain on hold (target range 1.50-1.75%) when it meets next week,” said Danske Bank analysts. “FOMC members have made it clear that they think the ‘current stance of monetary policy is appropriate’ and that they now want to wait some time and see how everything plays out before acting again.”


Daily Support and Resistance

  • S3 0.6795
  • S2 0.6811
  • S1 0.6817

Pivot Point 0.6826

  • R1 0.6833
  • R2 0.6842
  • R3 0.6858

AUD/USD– Trading Tips

On Wednesday, the AUD/USD is consolidating mostly bearish after falling below 38.2% Fibonacci retracement at 0.6820. It has also completed 50% Fibonacci retracement at 0.6795. The AUD/USD pair is now trading around 0.6808, in between the upper limit of 0.6820 and a lower limit of 0.6795. 

 A bearish breakout of 0.6795 level can extend selling until 0.6775. The MACD is holding below 0, suggesting the chances of a bearish trend continuation in Aussie. Let’s look for buying above 0.6775 and selling below 0.6820level. 

 

GBP/USD– Daily Analysis

The GBP/USD currency pair flashing green and hit the seven-months high from the bearish level of 1.3132 to 1.3189 while heading toward the United Kingdom elections on Thursday, and the result of elections will be released early Friday morning. As of writing, the currency is currently trading at 1.3188 and consolidates in the range between the 1..3132 to 1.3197.

According to the current situation, the Tories are ready to win the U.K. election, which may put the Brexit deal to bed. Today, the United Kingdom’s economic data don’t take a front seat due to the election hype, despite flat figures for Gross Domestic Produce for October. 

The GDP figures have followed 2-consecutive monthly contractions, which means we have now seen 3-consecutive months of negative/zero m/m growth for the 1st-time since 2009.

It should be noted that after this week’s snap December election, the next difficulty for the United Kingdom markets is next week’s Bank of England decision. However, the United Kingdom data continues to fall at a moderate rate since the last BoE meeting, which drives the dovish sentiment regarding the next rate decision. 

Looking forward, the markets will keep their focus on the Federal Open Market Committee and the Federal Reserve after the interest rate decision. Rates are expected to remain stable at 1.50-1.75%, while patience rhetoric will follow previous Federal Reserve speeches and statements furnished with preconditions before rate cut again in the future. 

    

Daily Support and Resistance

  • S3 1.3056
  • S2 1.3104
  • S1 1.3124

Pivot Point 1.3153

  • R1 1.3173
  • R2 1.3202
  • R3 1.325

GBP/USD– Trading Tip

The cable pair holds a bullish tone, but it is showing some short-term bearish signals after being unable to stay on top of 1.3160. Nevertheless, the trend in the pair points clearly to the upside, and consolidation of the GBP/USD above 1.3180 would expose the pair towards 1.3200. The prices need to cross May month high near 1.3180 to target 1.3200 and 1.3270 figures to the north, declining to do so highlights Wednesday’s top surrounding 1.3120 as immediate support. 

USD/JPY – Daily Analysis

The USD/JPY currency pair hit the bullish track and reached 108.75, mainly due to the Wall Street Journal reported that the United States and China trade talks are working toward delaying the tariff hike. After fastening to a fresh daily bullish of 108.75, the pair USD/JPY currency pair reversed slightly and was last seen trading at 108.62, where it was up 0.05% on a daily chart.

The U.S. and Chinese trade negotiators are planning for a delay of a fresh round of tariffs set to impose on December 15, according to officials on both sides. The market reaction to this headline also provided the ten-year United States Treasury bond yield to cancel its daily losses and helped the S&P 500 futures to move into the positive territory, pointing out to a positive shift in the market sentiment.

Meanwhile, the U.S. Dollar Index remains to move sideways a little above the 97.50 marks to allow the risk perception to continue to drive the pair’s action.

At the starting of today, the NFIB Business Optimism Index in the U.S. increased to 104.7 during November from 102.4, but the Unit Labor Costs rose 2.5% in the 3rd-quarter to drop short of the market expectation for an increase of 3.3%. But, these readings were largely ignored by the market members ahead of the FOMC’s monetary policy announcements on Wednesday. 

Daily Support and Resistance

  • S3 108.06
  • S2 108.31
  • S1 108.43

Pivot Point 108.56

  • R1 108.68
  • R2 108.8
  • R3 109.05

USD/JPY – Trading Tips

On Wednesday, the USD/JPY is likely to trade sideways until the release of FOMC and U.S. inflation rates. The pair is trading above 108.550, which is working as a double bottom support level. A bearish breakout of this level can trigger selling until 108.250. The USD/JPY has already completed 81% retracement on three hourly charts, and this level can give some support to USD/JPY. Above this, the pair may find resistance around 108.900. Let’s wait for FOMC to determine the further trend of USD/JPY. 

All the best!

Categories
Forex Market Analysis

Daily F.X. Analysis, December 05 – Top Trade Setups In Forex – Get Ready for European GDP! 

On the forex front, the British pound bounced 0.9% to $1.3103, the highest close since May. Polls suggested a majority-win by Prime Minister Boris Johnson’s Conservative Party in the general election to be held next week, which could clear political uncertainty over Brexit. Meanwhile, the Markit UK Services PMI for November (final reading) was released at 49.3 (48.6 expected).

On the forex front, the British pound bounced 0.9% to $1.3103, the highest close since May. Polls suggested a majority-win by Prime Minister Boris Johnson’s Conservative Party in the general election to be held next week, which could clear political uncertainty over Brexit. Meanwhile, the Markit UK Services PMI for November (final reading) was released at 49.3 (48.6 expected).

On the forex front, the British pound bounced 0.9% to $1.3103, the highest close since May. Polls suggested a majority-win by Prime Minister Boris Johnson’s Conservative Party in the general election to be held next week, which could clear political uncertainty over Brexit. Meanwhile, the Markit UK Services PMI for November (final reading) was released at 49.3 (48.6 expected).

The euro closed a few pips lower at $1.1077. The Markit Eurozone Services PMI for November (final reading) posted 51.9 (51.5 expected).

Economic Events to Watch Today

Let’s took at these fundamentals.

  

EUR/USD – Daily Analysis

The EUR/USD currency pair hit the multi-week highs just above the 1.1100 level, mainly due to the poor ADP data result. As of writing, the currency pair currently trading near the 1.1090 and consolidates in the range between 1.1067 – 1.1115.

The ADP showed the US US private sector added ‘just’ 67K jobs during last month, coming in well below estimates whereas the November’s print was also changed a tad lower to 121K (from 125K).

Looking forward, all eyes will be on I.S.M. Manufacturing for November, which is due to come out later in the NA session.

Eventually, the pair has stuck above the critical barrier at 1.1100 due to the continuous weak sentiment in the greenback and the intensified Sino-US trade war. 

IHS Markit reported that today’s data signals 0.1% GDP growth in the last quarter of the year, with manufacturing creating a notable resistance. While today’s figures steadied a bit from the previous reading, the numbers are at the lower end of what’s been reported over the last five years.

On the technical side, the EUR/USD pair is increasing 0.19% at 1.1102 and faces the next hurdle at 1.1161 (200-day SMA), followed by 1.1179 (monthly high Oct.21) and finally 1.1186 (61.8% Fibo of the 2017-2018 rally). On the other hand, a breakdown of 1.1040 (55-day SMA) would target 1.0989 (low monthly Nov.14) en route to 1.0925 (low Sep.3).

Daily Support and Resistance    

  • S3 1.0883
  • S2 1.097
  • S1 1.1025

Pivot Point 1.1057

  • R1 1.1112
  • R2 1.1145
  • R3 1.1232

EUR/USD– Trading Tips

The European traders are waiting for the GDP and Retail Sales data, which is due in a couple of hours. With an improved level of uncertainty, the greenback is getting weaker, which is why the EUR/USD is trading steadily in a narrow range. 

The EUR/USD has immediate support is near mid-1.1050 and is closely followed by the 1.1075 horizontal support mark. Considering the recent crossover on MACD, the pau may trade bullish above the 1.1070 level today. 

.

GBP/USD– Daily Analysis

The GBP/USD currency pair remains to flash green and hit the seven-months highs near the 1.3100 in the last trading hour. That happens after the incoming polls have hit a majority for the United Kingdom Prime Minister Boris Johnsons ruling Conservatives Party at the upcoming snap election, which is listed to occur on December 12.

It should be noted that the bullish sentiment in the pair did not take any effect by the weakness in the greenback, supported by a sharp intraday upward movement in the US Treasury bond yields and some positive trade-related headlines. Moreover, the report came that the United States and China are moving closer to a deal before the December 15 tariff due data.

The GBP/USD currency pair will likely be trying to improve the 1.3100 round-figure marks, although slightly overbought sentiments on intraday charts warrant some attention before initiating any new bullish positions. Market traders now look forward to the US economic docket, highlighting the release of ADP report and ISM Non-Manufacturing PMI, for some short-term impetus.

Daily Support and Resistance    

  • S3 1.2823
  • S2 1.2876
  • S1 1.2908

Pivot Point 1.2929

  • R1 1.2961
  • R2 1.2982
  • R3 1.3035

GBP/USD– Trading Tip

The GBP/USD’s bullish trend continues to dominate the market, and the pair is consistently heading north to test the initial resistance level of 1.3195. A bullish breakout of this mark can drive buying until 1.3335, the double top resistance level. 

In the daily timeframe, the GBP/USD has an upward crossover on MACD. Lastly, the three white candles on the daily timeframe are suggesting bullish bias among traders. 

AUD/USD– Daily Analysis

The AUD/USD pair flashing red and currently trading near the bearish range of 0.6853, mainly due to the intensified trade tension between the United States and China.

As of writing, the currency pair failed to continue its recent bullish streak and unfortunately came under pressure, as we know the pair registering 2-consecutive days of bullish streak in the wake of softer Austrian macro data.

Apart from this, Australia’s GDP growth slowed to 0.4% during the 3-months to September as compared to the previous quarter’s upwardly revised figures of 0.6% and worse than 0.5% expected.

At the Sino-US front, the overall sentiment on the AUD/USD currency pair affected mainly by the United States and China trade deal uncertainty. It should be recalled that the United States President Donald Trump said that the trade deal with China would likely not happen in 2020. As well as, the US US Congress on Tuesday overwhelmingly approved a bill condemning China’s mass detention of ethnic Muslims and called for sanctions against some officials responsible.

The AUD/USD currency pair left its recent bullish moves, and bearish sentiment remained strong so far, despite the weak greenback. Because investors continue to digest the latest trade developments, the greenback buyers remained on the defensive track, avoid a modest uptick in the US US Treasury bond yields.

Daily Support and Resistance    

  • S3 0.6699
  • S2 0.6752
  • S1 0.6785

Pivot Point 0.6806

  • R1 0.6839
  • R2 0.6859
  • R3 0.6913

AUD/USD– Trading Tips

The AUD/USD is trading slightly bearish to achieve 38.2% Fibonacci retracement at 0.6820. Over this, the Aussie has produced a series of bearish candles that are suggesting chances of a sell-off in Aussie. 

The AUD/USD may trade with a bullish bias above 0.6820 to aim 0.6850 and 0.6868 while the next support prevails around 0.6800. 

All the best!

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Forex Market Analysis

Descending Triangle In AUD/USD – Brace to Trade Breakout! 

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend

The AUD/USD currency pair sidelined near the 0.6788, despite the fifth-consecutive quarterly drop in Australian Construction Work, having hit the low of 0.6782 during the European session. 

The bearish trend in Aussie came after the Westpac Banking Corp announced on Wednesday in its forecast that the Reserve Bank of Australia (RBA) is expected to lower interest rates twice until it reaches 0.25% by June 2020. Later they will go for launching quantitative easing (Q.E.), 

The Construction figures for the (Q3) appeared in at -0.4% – the fifth straight quarterly drop. The numbers add to the gross domestic product, which will be released next week. However, the actual figure was unexpectedly better than the 1% decline. 

On the other hand, the United States President Donald Trump continues its hopes of a phase-one deal with China even after the media releases from Beijing that blamed the U.S. for unfair behavior. Moreover, the greenback stays on the bullish track across the board because investors still trust on the U.S. dollar during the risk-on sentiment.

Thus, the stronger dollar and weaker Aussie is causing bearish trends in the AUD/USD pair. 

Technically, the AUD/USD pair is trading sideways within a narrow trading range of 0.6800 – 0.6765. That’s the descending triangle pattern, which is keeping the pair in a consolidation. Mostly, this kind of pattern violates on the lower side, and if this happens, we may see AUD/USD prices going towards 0.6735.


Daily Support and Resistance

  • S3 0.6718
  • S2 0.675
  • S1 0.6763
  • Pivot Point 0.6781
  • R1 0.6795
  • R2 0.6813
  • R3 0.6844

Today, consider taking sell positions below 0.6800 until 0.6765, and then if 0.6765 also gets violated, we will have a chance to add further selling until 0.6735. All the best! 

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Forex Market Analysis

NZD/USD long – attractive risk-reward ratio potential.

NZD/USD



The bigger picture on NZD/USD is very clear from the Elliott wave perspective. We see nice unfold of 5 waves down, starting from February 2018. The final move could be labelled as an ending diagonal pattern, which showing us a squeezing of the price action, and bear forces weakening, which should be followed by the strong sharp move up or pullback in at least 3 legs up, usually a zig-zag A-B-C pattern. Also, this trade could give us a very attractive risk-reward ratio potential.

 

DXY



As you can see on the chart, currently we are tracking the A-B-C zig-zag pullback pattern. We have two option, depending on how patient we are. The first one is to buy here with the target above the previous high 95.75 or to wait for this b wave of the A-B-C pattern to be finished in the 50-61% Fibo retracement area, and then to sell DXY with higher profit potential.

 

USD/CAD



As we expected the pair retraced and currently testing the previous resistance, now support level, which stands around 50% Fibonacci retracement. This is our sweet spot to start buying and building gradually our long position. Sooner or later we will see some sharp moves higher above the previous higher high 1,3226. because this leg should be labeled as a wave 3, which is usually the longest and the strongest.

 

AUD/USD



The bigger picture on Aussie is clear, the current price action is labelled as a wave 5, the final Elliott wave. On a smaller picture, the situation is a bit tricky, since we do not have yet any confirmation of when and where the pullback will start. So, for now, we should stay in a wait and see mode. We know for sure that the wave 5 must overcome the wave 4, so on a bigger picture we do expect Aussie weakening, but current market does not give us yet the good risk-reward trading opportunity.

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Forex Market Analysis

Daily Market Update: Easing on Italy’s Politics, CAD Rate Statement, and Possible US Tariffs on EU

 

News Commentary

 

The Euro gained on Thursday as Italian parties renewed attempts to form a government, to calm down the concerns about the wider impact of a political crisis in Europe’s third-largest economy.

The two anti-establishment parties have made many efforts to form a coalition government, rather than force Italy into holding elections for the second time this year in September.

The CPI flash estimate enhanced the regains of the Euro after a reading of 1.9% more than the forecast, which was 1.6%, along with the core reading of 1.1% more than the forecast which was 1.0%.

Bank of Canada Governor Stephen Poloz left rates on hold for a third straight decision on Wednesday at 1.25%, but gave a hawkish statement for the economy and removed some cautious language.

The central bank also clarified that recent economic data bolsters its April outlook for a 2% growth in the first half of 2018.

All eyes will be on GDP at 12:30 GMT with the expectation of 0.2% after the last reading of 0.4%. Any higher than expected would reinforce the optimism bias.

 

Australia reported worse than expected Capex data. Private capital expenditures rose only 0.4% in the first quarter against 1.0% estimated and 0.2% from the fourth quarter of last year.

 

Negative data came from the US yesterday as ADP Non-Farm Employment Change released lower than expected figures with 178K. Along with prelim GDP which came in at 2.2%, lower than the forecast and the previous reading at 2.3%.

 

There’s some news that Washington will announce plans to put tariffs on Eurozone steel and aluminium imports, sources said.

They said the announcement was planned for Thursday morning in Washington but that the timing could still change. Commerce Secretary Wilbur Ross told the French daily newspaper, Le Figaro it would be announced either before markets opened or after they closed.

While not confirming for sure that the U.S. would decide to force tariffs, he said: “It’s up to the European Union to decide if it wants to take retaliatory measures. The next question would be: how will the U.S. President Donald Trump react? You saw his reaction when China decided to retaliate.”

 

 

Chart Analysis

 

USD/CAD

On the daily chart, as we expected the price had made its way into the resistance zone of 1.289-1.298, almost reaching the key resistance at 1.309, with an approach from the descending trend line starting from the high of 2015, and the upper edge of the horn pattern.

The price has already bounced beneath the key resistance and the resistance zone, to take the price firstly to the support level at 1.274.



 

AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535 with a pin bar.

That enhances the AB=CD harmonic pattern, with breaking a descending channel.

The pair rose with an engulfing candle from the support zone.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 and the broken uptrend.



 

AUD/JPY

On the daily chart, as we expected, the price reached the resistance zone at 84-84.35.

The price couldn’t break through this area to bounce back.

It reached the support levels at 81.25-80.5 (as we expected also) to pull back up again boosted by the ascending trend from the low of March.

As the pair is currently moving sideways. The price is expected to retest the resistance zone again.



 

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Forex Market Analysis

Daily Market Update: US- North Korea Summit, Italian Politics, and Negotiations of NAFTA

 

News Commentary

 

 

The news has featured that the U.S.-North Korea summit is back on track. North Korea and the US are starting the preparations for the June

 

News Commentary

 

 

The news has featured that the U.S.-North Korea summit is back on track. North Korea and the US are starting the preparations for the June

 

News Commentary

 

 

The news has featured that the U.S.-North Korea summit is back on track. North Korea and the US are starting the preparations for the June 12 summit between Kim Jong-un and Donald Trump.

Separately, Trump contacted the Japanese prime minister, Shinzo Abe. He “affirmed the shared imperative of achieving the complete and permanent dismantlement of North Korea’s nuclear, chemical, and biological weapons and ballistic missile programs,” The White House claimed. And they would meet before the Kim-Trump summit.

Meanwhile, the U.S. 10-Year Treasury Yield fell at the beginning of the week to a six-week low at 2.89%.

Japan’s unemployment rate remained stable at 2.5% but the jobs ratio moved lower from 1.6% to 1.59%.

 

The political situation in Italy also blocked investor’s risk appetite. Italian President Sergio Mattarella refused to accept the nomination of a euroskeptic finance minister, motivating the anti-establishment Five Star Movement and far-right League party to give up trying to form an administration.

 

Canadian Foreign Minister Chrystia will fly to Washington to continue the NAFTA negotiations on Tuesday and Wednesday. “we’ve said all along we are ready to go (to Washington) at any time.” Said her spokesman Adam Austen.

 

 

Chart Analysis

 

AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.

That enhances the AB=CD harmonic pattern, with breaking a descending channel.

The pair had risen with an engulfing candle and pulled back with a hammer, one touching the support zone again.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 & the broken uptrend.



 

USD/JPY

The price has reversed from a very strong short-selling area, rebounding from the key resistance level at 111.1 and the lower trend line from the high of 2015, also reversing from the top edge of the upward channel along with forming an AB=CD harmonic pattern with overbought on RSI.

The price has broken the key support level 110.05 along with the ascending channel.

So, the price is supposed to revisit the support level at 108.15.



 

AUD/JPY

On the daily chart, as we expected, the price reached the resistance zone at 84-84.35 affected by shaping a head & shoulders reversal pattern.

The price couldn’t break through this area to bounce back.

It could reach the support levels at 81.25-80.5 to pull back up again, as the pair is currently moving sideways.



 

 

USD/CAD

On the daily chart, the price had made its way into the resistance zone of 1.289-1.298, also reaching near the key resistance at 1.309.

With an approach from the descending trend line starting from the high of 2015 and the upper edge of the horn pattern.

If the daily candle closes beneath this zone again with suitable price action, it will prompt the price to be bearish to the support zone 1.2525-1.2415.



 

 

Categories
Forex Market Analysis

Daily Market Update: Cancellation of the US-North Korea Summit, GB Second Estimate GDP

 

News Commentary

The market reacted to the news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.

“I have decided

 

News Commentary

The market reacted to the news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.

“I have decided

 

News Commentary

The market reacted to the news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.

“I have decided to terminate the planned Summit in Singapore on June 12th. While many things can happen and a great opportunity lies ahead potentially, I believe that this is a tremendous setback for North Korea and indeed a setback for the world…”. Trump noted.

This came with The U.S. Commerce Department decision that it would apply a national security investigation into car and truck imports, a move that could lead to tariffs like those on steel and aluminium in March. This made traders nervous which was obvious on the markets, to avoid risk they relied on safe havens.

In Great Britain, there’s a second estimate on GDP at 8:30 GMT. The forecast is 0.1%. Any disappointing reading would pressure the Pound down deeper.

Chart Analysis

 

USD/CAD

On the daily chart, the price had made its way into the resistance zone of 1.289-1.298.

With an approach from the descending trend line starting from the high of 2015.

If the daily candle closes beneath this zone again, it will prompt the price to be bearish to the support zone 1.2525-1.2415.


AUD/USD

On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.

That enhances the harmonic pattern AB=CD, with breaking a descending channel.

The pair had risen with an engulfing candle and pulled back with a hammer, one touching the support zone again.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 & the broken uptrend.