Short Term FX Trading Idea AUD/USD

Despite fading hopes of a U.S.-Sino trade deal, Aussie has managed to advance against the US$. It is now at the top of its range and at an important resistance point. Aussie has also managed to shake off the minutes of RBA monetary policy meeting, where RBA dropped a hint that Aussie interest rate may be cut again at its monetary meeting later this month. Despite these negative news, Aussie has managed to hold against the US dollar.

If price can break above the important 0.6825 resistance point, price can go higher to 0.6860. The is the V price projection, using the Ichimoku V price projection. Going by Fibonacci, the 161.8% price projection comes in at 0.6855. There is also a previous support turned into resistance at 0.6865. This resistance zone (0.6855-0.6865) may not be easy to break above.

Stochastic is rising and has yet to reached the overbought extreme. MACD could be turning bullish. The faster line of the MACD indicator is already above the zero line and is moving up sharply.

We would recommend a buy on breakout of 0.6825 for 0.6860 with a stop just below 0.6800.

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