Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Melbourne Institute Inflation Index for February increased by 4.6% annualized. Forex traders can compare this to the Australian Melbourne Institute Inflation Index for January, which increased 4.4% annualized. Australian Building Approvals for December rose 8.2% monthly, and Private House Approvals decreased 1.8% monthly. Forex traders can compare this to Australian Building Approvals for November, which increased 2.6% monthly, and Private House Approvals, which dropped 1.6% monthly.
US Initial Jobless Claims for the week of January 29th are predicted at 230K, and US Continuing Claims for the week of January 22nd are predicted at 1,615K. Forex traders can compare this to US Initial Jobless Claims for the week of January 22nd, reported at 238K, and to US Continuing Claims for the week of January 15th, reported at 1,628K.
The US CPI for January is predicted to rise 0.5% monthly and 7.3% annualized. Forex traders can compare this to the US CPI for December, which increased 0.6% monthly and 7.0% annualized. The US Core CPI for January is predicted to expand 0.5% monthly and 5.9% annualized. Forex traders can compare this to the US Core CPI for December, which rose 0.6% monthly and 5.5% annualized.
The US Monthly Budget Statement for January is predicted at $25.0B. Forex traders can compare this to the US Monthly Budget Statement for December, reported at -$21.0B.
The forecast for the AUD/USD turned bearish after this currency pair advanced into its descending Ichimoku Kinko Hyo Cloud. Confirming the absence of short-term bullishness is the flat Kijun-sen, but the Tenkan-sen continues to drift higher, suggesting more volatility ahead. Traders should monitor the CCI, which approached extreme overbought territory. It may push higher temporarily, as bulls and bears wrestle for control, but a breakdown below 100 is likely to trigger another sell-off. Can bears regain the upper hand and force the AUD/USD into its horizontal support 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 breakdown below the 0.7140 to 0.7195 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7180
- Take Profit Zone: 0.6995 – 0.7025
- Stop Loss Level: 0.7235
Should price action for the AUD/USD breakout above 0.7195, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7235
- Take Profit Zone: 0.7315 – 0.7360
- Stop Loss Level: 0.7195
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
