AUDUSD – Aiming For New Highs

Before you read today’s analysis, read EURUSD analysis from yesterday. EURUSD moved close to 150 pips since then and we were able to lock in +105 pips on Elite Swing Signals on EURUSD Long trade. I personally took another long trade based on CandleTick strategy earlier in the Asian session yesterday, which netted +100 pips more.

AUDUSD Technical Analysis

Today we look at AUDUSD. Technical Analysis of weekly chart shows break of the upper trendline. price from here is likely to move up towards the resistance at 1.0230. Price need to close above this level for it to keep moving higher.

AUDUSD daily chart shows that price closed above the weekly trendline last week and so far this week it has been hanging around the same area on 4 hour chart. Now it seems to have broken and re-tested the trendline and poised to go up from here.

AUDUSD Fundamental Analysis

Reserve Bank of Australia is due to meet later in the day and likely to keep interest rates at 4.75%. Current monetary policy and Inflation so far at a safe level, however recent floods in Queensland are bit of a concern.

If RBA comments about concerns towards increase in inflation due to floods then it could lead AUDUSD higher in hope that Interest Rates are likely to go up in near future.

AUDUSD Trading Plan

If price drops to trendline before heading up to the resistance above, then look for aggressive long trades around 1.0150. If price pushes higher and close above 1.0230-50 then look for re-test of this area for long trades.

On the other hand if momentum towards the downside is strong then look for shorts if price close below the trendline at 1.0150

Don’t agree with this analysis? Leave a comment below.

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One Response to “AUDUSD – Aiming For New Highs”

  1. FirePips 1 March 2011 at 3:14 pm #

    Current monetary policy is appropriateInflation – Inflation is consistent with 2%-3% target band.
    – Inflation is consistent with medium term policy.
    – Production losses resulted in some food prices rising.
    – Food prices will fall later in the year.

    – Reiterates High A$ , competition is helping offset rising utility prices.
    – Private investment it picking up mainly in the resources sector.
    – Wages are growing at a pace prior to economic downturn.
    – Reiterates Terms of trade remain at highest levels since 1950s.
    – Effects of natural disasters will reduce production levels but will recover.
    – Mild boost in demand from rebuilding efforts.
    – Further growth in employment is likely.
    – Reiterates Australia households continue to be cautious in spending and borrowing
    . – Overall credit growth remains subdued. – Sees skill shortages in resources sector.
    – Asset values are little changed over recent months.

    – Global economy is continuing to expand.
    – Commodity prices have risen further over recent months.
    – Financial conditions for global economy remain accommodative.
    – Commodity prices are pushing up inflation in many countries.

    ***Insight: RBA last tightened policy on Nov 1st after 6 consecutive rate holds.
    – The RBA has embarked on a tightening cycle starting in Oct 2009. The RBA has raised rates a total of seven times for cumulative total of 175bps.

    Source: TradeTheNews

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