Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian Wage Price Index for the third quarter increased by 0.8% quarterly and 3.5% annualized. Economists predicted a rise of 0.9% and 3.6% annualized. Forex traders can compare this to the Australian Wage Price Index for the second quarter, which rose by 0.8% quarterly and 4.1% annualized.
The US CPI for October is predicted to increase by 0.2% monthly and by 2.6% annualized. Forex traders can compare this to the US CPI for September, which expanded by 0.2% monthly and 2.4% annualized. The US Core CPI for October is predicted to rise by 0.3% monthly and 3.3% annualized. Forex traders can compare this to the US Core CPI for September, which increased by 0.3% monthly and 3.3% annualized.
The US Monthly Budget Statement for October is predicted to show a deficit of $226.4B. Forex traders can compare this to the US Monthly Budget Statement for September, which reported a surplus of $64.0B.
The forecast for the AUD/USD turned bullish after this currency pair corrected into its horizontal support area with decreasing selling pressure and downside risks. The Tenkan-sen has flatlined below the descending Kijun-sen, and the closing gap could result in a bullish crossover. The Senkou Span A of the Ichimoku Kinko Hyo Cloud is moving lower below the flat Senkou Span B, suggesting more medium-term volatility. Traders should also monitor the CCI in extreme oversold territory, where it could form a higher low. A breakout by this technical indicator above -100 could trigger the next advance. Can bulls regain control over the AUD/USD and force price action into its 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 0.6510 to 0.6540 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6525
- Take Profit Zone: 0.6685 – 0.6720
- Stop Loss Level: 0.6480
Should price action for the AUD/USD break down below 0.6510, PaxForex the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6480
- Take Profit Zone: 0.6380 – 0.6410
- Stop Loss Level: 0.6510
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