AUDUSD Eyes 1.8000 As Bullish Pin Bar Emerges

FXOpen

Technical Bias: Bearish

Key Takeaways:

  • AUDUSD rallies as bullish pin bar emerges
  • Australia’s services sector grew more than forecast
  • Bullish momentum likely to continue in near future

The Australian Dollar (AUD) rallied broadly against the US Dollar (USD) on Wednesday, increasing the price of AUDUSD to more than 0.7800 following the Services Index news. The technical bias however remains bearish in long term due to Lower Lows on the daily chart.

Technical Analysis

 As of this writing, the pair is being traded near 0.7815. A support can be seen near 0.7625, the swing low of the bullish pin bar ahead of 0.7600, the psychological number. The bias will however remain bearish as long as the 0.8293 resistance area is intact.

AUDUSD Eyes 1.8000 As Bullish Pin Bar Emerges

On the upside, the pair is expected to face a hurdle near 0.7881, the 38.2% fib level ahead of 0.7960, the 50% fib level and then 0.8297, the swing high of the last major rally as demonstrated in the above daily chart.

AIG Services Index

The services sector in Australia grew by 49.9 points in January as compared to 47.5 points in the month before, up beating the average forecast of 46.11 points, a report revealed on Wednesday. Generally speaking, higher services index reading is considered positive for the economy thus a better than expected actual outcome spurred bullish momentum in the price of AUDUSD which is likely to continue in the near future.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around the current levels appears to be a good strategy in short to medium term. A tight stop should however be placed at swing low of the bullish pin bar as described above.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Analysis of USD/JPY: Was There an Intervention?
Forex Analysis

Analysis of USD/JPY: Was There an Intervention?

Yesterday’s news of slowing inflation in the US sharply weakened the dollar, anticipating the Federal Reserve’s monetary easing. In the first 15 minutes after the data release:

→ EUR/USD rose by approximately 0.45% to the psychological level

What Is a Parabolic Arc Pattern, and How Can You Trade It?
Trader’s Tools

What Is a Parabolic Arc Pattern, and How Can You Trade It?

The parabolic arc pattern is a significant formation in technical analysis, showcasing rapid, exponential price movements that signal significant bullish momentum followed by sharp reversals. This article delves into identifying, trading, and managing the risks associated with parabolic arcs.

Understanding

The Nasdaq 100 Index Fell Despite Positive Inflation News
Indices

The Nasdaq 100 Index Fell Despite Positive Inflation News

Yesterday, Consumer Price Index (CPI) values were published, indicating a slowdown in the rate of inflation in the USA. According to ForexFactory:

→ CPI month-on-month: actual = -0.1%, forecast = 0.1%, previous month = 0.0%;

→ CPI year-on-year: actual = 3.0%, forecast

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.