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.
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.
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.
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