Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian NAB Business Conditions for March were reported at 25 and Australian NAB Business Confidence at 15. Forex traders can compare this to NAB Business Conditions for February, reported at 17, and to Australian NAB Business Confidence, reported at 18.
The US CPI for March is predicted to increase by 0.5% monthly and by 2.5% annualized. Forex traders can compare this to the US CPI for February, which increased by 0.4% monthly and by 1.7% annualized. The US Core CPI for March is predicted to increase by 0.2% monthly and by 1.5% annualized. Forex traders can compare this to the US Core CPI for February, which increased by 0.1% monthly and by 1.3% annualized. US Real Earnings for March are predicted to increase by 0.1% monthly. Forex traders can compare this to US Real Earnings for February, which decreased by 1.0% monthly.
The forecast for the AUD/USD turned moderately bullish as the Covid-19 situation in the US is approaching the peak of the 2020 summer. Complacency and misplaced vaccine hope resulted in a surge in hospitalizations. The Tenkan-sen and the Kijun-sen flatlined, confirming deflating bearishness, while the Ichimoku Kinko Hyo Cloud extends its drift lower. Traders should expect a rise in volatility before this currency pair can attempt a reversal. The CCI moved out of extreme oversold territory but could dip lower one more time. A higher low will provide another buy signal. Will bulls gather enough power to push the AUD/USD into its next horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the AUD/USD remain inside the or breakout above the 0.7565 to 0.7630 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7600
- Take Profit Zone: 0.7805 – 0.7850
- Stop Loss Level: 0.7530
Should price action for the AUD/USD breakdown below 0.7565, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7530
- Take Profit Zone: 0.7400 – 0.7460
- Stop Loss Level: 0.7565
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