AUD/USD Hovers Near Crucial Resistance Amid Global Economic...AUD/USD Hovers Near Crucial Resistance Amid Global Economic Uncertainty
Introduction
The AUD/USD currency pair is currently trading within a tight range near the critical resistance level of 0.6400 during the London session. This cautious movement mirrors the trajectory of the US Dollar Index (DXY), which is maintaining its position near a five-month high of 105.20. In this article, we will explore the factors influencing the AUD/USD pair and the broader economic dynamics driving this market sentiment.
Global Economic Uncertainty
S&P500 futures experienced some losses in European trading, reflecting a cautious market sentiment. Investors are increasingly apprehensive about potential economic turmoil, primarily attributed to the stringent monetary policies adopted by Western central banks. This has prompted a flight to safety, with investors flocking to the US Dollar amid lingering doubts about the global economic recovery within the context of a high-interest-rate environment.
Central Bank Actions
Both European and Asian economies are grappling with the consequences of higher interest rates imposed by their respective central banks as a countermeasure against stubborn inflation. The result has been a contraction in economic activities across the largest continent and the trading bloc, largely due to weakened demand conditions. Furthermore, businesses worldwide are becoming more risk-averse, opting to avoid taking on additional credit due to the burden of higher interest obligations.
Federal Reserve Outlook
On Thursday, Federal Reserve speakers expressed support for maintaining interest rates at their current levels in the upcoming September monetary policy meeting. Investors are eagerly awaiting the release of the August Consumer Price Index (CPI) data, which is expected to provide further insights into the central bank's future interest rate policy decisions.
Reserve Bank of Australia (RBA) Stance
The Australian Dollar has remained in the spotlight this week as the Reserve Bank of Australia (RBA) chose to leave its interest rate policy unchanged. RBA Governor Philip Lowe conveyed optimism about the labor market outlook, highlighting that the Unemployment Rate could remain at near 40-year lows while wage growth remains robust.
China's Economic Data
Investor attention is also drawn to China's Consumer Price Index (CPI) for August, set to be published on Saturday. Analysts anticipate that monthly economic data will expand at a rate of 0.3%, surpassing the 0.2% recorded for July. Additionally, annual inflation is projected to stand at 0.1%, marking a reversal from the previous deflationary reading of -0.3%.
Conclusion
The AUD/USD currency pair's current consolidation near the 0.6400 resistance level reflects the prevailing global economic uncertainty. This uncertainty is driven by the cautious stance of Western central banks and their aggressive monetary policies to combat inflation. The US Dollar's role as a safe haven in this environment is evident as investors seek refuge amid doubts about the worldwide economic recovery. As central banks continue to make policy decisions and economic data unfolds, market participants must remain vigilant and adaptable in navigating this complex and rapidly evolving landscape.
Aus
AUDJPY 2nd April Based on our analysis of the AUDJPY chart, we have identified a bullish setup that we believe will continue to push prices higher in the coming week. Our primary focus is on the hourly supply zone, which is located at the last major high on the chart. We anticipate that the bullish movement will carry us up to this level and possibly even beyond.
To identify our bullish setup, we have been using the 5/15-minute swing move and analyzing the price action on the 15-minute timeframe. We are looking for price to shift higher from one of our major lows, which would confirm our bullish bias. This setup is currently in play, and we are monitoring the price action closely.
However, if we don't see the anticipated bullish shift, we will start to consider bearish moves lower. Nonetheless, we understand that we are in a bullish trend, and until there is a confirmed breakdown, we will continue to expect prices to move higher.
In summary, our analysis indicates that there is a high probability of a bullish move towards the hourly supply zone, and we will be closely monitoring the price action to confirm this view. If we see any bearish signals, we will reassess our bias accordingly.
We'll be closely monitoring market openings and price action throughout the week. If you find this analysis useful, let us know in the comments below and hit the boost button to show your support. Here's to a successful week of trading!
NZD/USD Fundamental + Technical Macroeconomic Update | 3.14.23On Wednesday, the S&P/ASX 200 Index increased by 0.8%, going above 7,060. This rise was due to an increase in technology and banking stocks, following similar trends on Wall Street. Investors are hopeful that the worst is over from the collapse of Silicon Valley Bank and Signature Bank. Additionally, a US inflation report that matched expectations calmed the market, with investors betting on a smaller interest rate hike by the Federal Reserve next week. However, recent data shows that Australian consumer sentiment remains at historic lows due to concerns about inflation, interest rates, and the broader economy. Business sentiment also dropped to a three-month low in February. The technology sector was led by Computershare, Block Inc, and Xero, while the "Big Four" banks (CBA, ANZ Group, Westpac, and NAB) also saw gains.
Further downside is expected on EURAUDEURAUD - Intraday - We look to Sell at 1.4400 (stop at 1.4465)
Previous support located at 1.4300. Previous resistance located at 1.4350. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 1.4400, resulting in improved risk/reward. A move through 1.4300 will confirm the bearish momentum.
Our profit targets will be 1.4250 and 1.4225
Resistance: 1.4350 / 1.4400 / 1.4450
Support: 1.4300 / 1.4250 / 1.4225
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Ending wedge indicates higher prices on EURAUDEURAUD - Intraday - We look to Buy at 1.4575 (stop at 1.4475)
Previous support located at 1.4600. Previous resistance located at 1.4700. Price action looks to be forming a bottom. Risk/Reward would be poor to call a buy from current levels. A move through 1.4700 will confirm the bullish momentum.
Our profit targets will be 1.4775 and 1.4800
Resistance: 1.4700 / 1.4750 / 1.4800
Support: 1.4600 / 1.4575 / 1.4500
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
We prefer to set shorts EURAUDEURAUD - Intraday - We look to Sell at 1.4625 (stop at 1.4725)
Previous support located at 1.4500. Previous resistance located at 1.4550. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 1.4625, resulting in improved risk/reward. A move through 1.4500 will confirm the bearish momentum.
Our profit targets will be 1.4375 and 1.4350
Resistance: 1.4550 / 1.4625 / 1.4700
Support: 1.4500 / 1.4450 / 1.4375
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Selling EURAUD at trend resistanceEURAUD - Intraday - We look to Sell at 1.4700 (stop at 1.4800)
Previous support located at 1.4550. Previous resistance located at 1.4600. There is no clear indication that the downward move is coming to an end. A higher correction is expected. Risk/Reward would be poor to call a sell from current levels.
Our profit targets will be 1.4450 and 1.4400
Resistance: 1.4600 / 1.4700 / 1.4800
Support: 1.4550 / 1.4500 / 1.4450
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Further AUDJPY weakness expectedAUDJPY - Intraday - We look to Sell at 93.00 (stop at 94.00)
Previous support located at 92.00. Previous resistance located at 93.00. Trend line resistance is located at 93.00. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 93.00, resulting in improved risk/reward. A move through 92.00 will confirm the bearish momentum.
Our profit targets will be 90.50 and 90.00
Resistance: 93.00 / 93.50 / 94.00
Support: 92.00 / 90.50 / 90.00
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Broken support likely to lead to more losses on EURAUDEURAUD - Intraday - We look to Sell at 1.5050 (stop at 1.5150)
Previous support located at 1.4850. Previous resistance located at 1.5000. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 1.5000, resulting in improved risk/reward. A move through 1.4850 will confirm the bearish momentum.
Our profit targets will be 1.4800 and 1.4750
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Resistance: 1.4950 / 1.5000 / 1.5050
Support: 1.4850 / 1.4800 / 1.4750
EURAUD approaching key supportEURAUD - Intraday - We look to Buy at 1.5100 (stop at 1.4980)
Previous support located at 1.5150. Previous resistance located at 1.5250. We expect a reversal in this move. Risk/Reward would be poor to call a buy from current levels. A move through 1.5250 will confirm the bullish momentum.
Our profit targets will be 1.5375 and 1.5400
Resistance: 1.5250 / 1.5300 / 1.5400
Support: 1.5150 / 1.5100 / 1.5000
Risk Disclaimer
The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
You accept that you assume all risks in independently viewing the contents and selecting a chosen strategy.
Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, Oanda Asia Pacific Pte Ltd (“OAP“) accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore customers should contact OAP at 6579 8289 for matters arising from, or in connection with, the information/research distributed.'
Joe Gun2Head Trade - Buying GBPAUD the dip.Trade Idea: Buying GBPAUD
Reasoning: Buying at the lower end of a short term channel
Entry Level: 1.7587
Take Profit Level: 1.7857
Stop Loss: 1.7517
Risk/Reward: 3.89:1
Disclaimer – Signal Centre. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like all indicators, strategies, columns, articles and other features accessible on/though this site is for informational purposes only and should not be construed as investment advice by you. Your use of the technical analysis , as would also your use of all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
AUDUSD D1 - Long Signal 0.70 HandleAUDUSD D1
Something else for the watchlist this week, big 0.70 handle looking like a nice support zone to consider taking long positions, we haven't traded lower than this 0.70 handle for 1.5 years.
Healthy corrections would see us trade back up towards that 0.72700 resistance price.
#AUDUSD approaching pivot, potential for a bounce!Description
Price is approaching pivot level of 0.72245, which is in line with 23.6% Fibonacci retracement level & horizontal overlap resistance. A reversal from this level may see price take resistance at price 0.70626. This level coincides with 127.2% Fibonacci extension levelhorizontal overlap support. Finally, we can expect price to take support at 0.71185horizontal swing low support . This is further supported by how price is likely to bounce off the Stochastic support level .
Pivot:
0.72245
Why we like it:
23.6% Fibonacci retracement level & horizontal overlap resistance
1st Support:
0.71185
Why we like it:
horizontal swing low support
1st Resistance:
0.70626
Why we like it:
127.2% Fibonacci extension levelhorizontal overlap support
Trading FX & CFDs carries high risk.
#AUDUSD approaching pivot, potential for a bounce!Description
Price is approaching pivot level of 0.72256, which is in line with 161.8% Fibonacci extension level, 100% Fibonacci extension level & horizontal overlap support. A reversal from this level may see price take resistance at price 0.72979. This level coincides with horizontal overlap resistance. Finally, we can expect price to take support at 0.71717127.2% Fibonacci extension levelhorizontal swing low support . This is further supported by how price is likely to reverse off the Stochastic resistance level.
Pivot:
0.72256
Why we like it:
161.8% Fibonacci extension level, 100% Fibonacci extension level & horizontal overlap support
1st Support:
0.71717
Why we like it:
127.2% Fibonacci extension levelhorizontal swing low support
1st Resistance:
0.72979
Why we like it:
horizontal overlap resistance
Trading FX & CFDs carries high risk.
AUDUSD- Bearish trend has startedHello,
I have entered short on the AUD/USD with two trigger entry points.
AUS have been struggling majorly with the Delta virus spreading across the country. Now they're stuck in a pandemic with only a very small percentage of the country which has received both jabs.
On the other hand the DXY has been recovering well as of late.
After last Fridays movement south in AUD/USD its pulled back to previous support, new resistance and looks to carry on trend.
Good luck if you join.
Don't trade against the US Dollar for the next few weeks.Hello all
DuncanForex here with many trade ideas - see below. - with no mention of any websites etc
With the USD gaining strength, you can sell anything XXX USD and buy USD XXX
Many opportunities opened this morning for a great trading week
Stay safe and safe trading
Duncan
💡 Don't miss the great sell opportunity in AUDUSDTrading suggestion:
. There is still a possibility of temporary retracement to suggested resistance line (0.755). if so, traders can set orders based on Price Action and expect to reach short-term targets.
Technical analysis:
. AUDUSD is in a range bound and the beginning of downtrend is expected.
.The price is above the 21-Day WEMA which acts as a dynamic support.
. The RSI is at 40.
Take Profits:
TP1= @ 0.7460
TP2= @ 0.7420
TP3= @ 0.7370
SL: Break Above R2
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