AUDUSD remain bullish above supportBuy above 0.7668. Stop loss at 0.7646. Take profit at 0.7733.
Reason for the trading strategy (technically):
We remain bullish above 0.7668 support (long term ascending support, horizontal support, Fibonacci extension) for a further push up to 0.7733 resistance (Fibonacci extension, horizontal resistance).
RSI (34) is seeing strong support above the 41% level where we expect price to continue to rise from.
Reason for the trading strategy (fundamentally):
The major news item today affecting USD is the Gross Domestic Product (GBP) which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health. If the actual release is better than the forecast, that means it is good for the currency and we can expect USD to strengthen. However, if the actual release is less than the forecast, that means it is bad for USD and we can expect USD to weaken. Our current forecast is for a rise from 1.9% to 2.1% which means we could expect a stronger USD, this goes against our bullish AUDUSD view, hence, it is best to exercise caution on this trade.
The other major news event driving the USD today is the U. of Michigan Confidence. It assesses consumer confidence regarding personal finances, business conditions and purchasing power based on hundreds of telephone surveys. A low or falling University of Michigan Sentiment value is considered an early indicator of an economic downturn. We’re expecting a higher value which means a stronger USD, which goes against our bullish AUDUSD trade today too.
