FXOpen
The Australian Dollar (AUD) rallied against the US Dollar (USD) on Wednesday, increasing the price of AUDUSD to more than 0.7700 following the release of some high profile economic reports. The technical bias remains bullish in the short term because of a Higher High in the recent upside rally.
Technical Analysis
As of this writing, the pair is being traded near 0.7685. The pair is expected to face a hurdle near 0.7734, the swing high of the last major upside rally ahead of 0.7755, the high of 2016 as demonstrated in the given below daily chart.
On the downside, a support can be seen around 0.7580, the trendline support ahead of 0.7500, the confluence of psychological number, horizontal support and swing high of the recent downside move as demonstrated in the above chart. A break and daily closing below the 0.7500 zone shall increase selling pressure, validating a move towards the 0.7350 level in near future.
Consumer Price Index
Australia’s September quarter consumer price inflation (CPI) report has just been released, and it’s come in hotter-than-expected. Headline CPI rose by 0.7% for the quarter, leaving the year-on-year increase at 1.3%. The figure beat expectations for an increase of 0.5% and was higher than the 0.4% level reported in the June quarter. Economists were looking for a gain of 0.4% for the quarter, and 1.55% increase year-on-year.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair can be a good strategy if we get a better a valid bearish reversal candle on the daily chart.
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.
Latest from Forex Analysis
Latest articles
What Order Imbalance Is and How To Use It in a Trading Strategy
Understanding the nuances of order imbalances is key for traders looking to navigate the ebb and flow of asset prices. Order imbalances provide a clear window into the supply and demand dynamics at play, offering strategic insights. This article delves
XAU/USD Gold Price Reaches an Important Resistance Zone
The XAU/USD gold chart today indicates that the historical record price of the metal is above USD 2,400 per ounce.
In addition to fears of a new round of inflation due to rising commodity prices, geopolitical tensions are
What Is a Break of Structure and How Can You Trade It?
In the ever-evolving world of Smart Money Concept (SMC) trading, a nuanced understanding of market dynamics is indispensable. This article explores the concept of Break of Structure (BOS), how to identify it, and its implications for trading strategies, setting traders