Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Australian RBA cut interest rates by 0.15% to 0.10%. Economists predicted a cut to 0.10%. Forex traders can compare this to the previous Australian RBA Interest Rate Decision, where interest rates were left unchanged at 0.25%. US Factory Orders for September are predicted to increase by 1.0% monthly. Forex traders can compare this to US Factory Orders for August, which increased by 0.7% monthly.
Forex traders will pay close attention to the US presidential election today. While results may not be known for days, exit polls could indicate if President Trump won a second term or it former Vice President Biden secured the White House for Democrats. While the attention in the media remains on who will lead the US over the next four years, a more significant race to monitor is the one for the Senate. A Biden victory without a Senate controlled by Democrats will not change much other than an image adjustment in the global stage, similar to Trump without the House of Representatives under Republican control.
The forecast for the AUD/USD remains bullish with uncertainty over the US economy at the forefront. The second wave of Covid-19 infections may pressure more localized lockdowns across the US, derailing the current recovery. The Tenkan-sen and Kijun-sen entered a sideways trend, but the CCI exited extreme oversold territory. Will bulls have enough power to rally into the Ichimoku Kinko Hyo Cloud, which continued to slope to the downside? 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 0.7025 to 0.7075 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7055
- Take Profit Zone: 0.7210 – 0.7240
- Stop Loss Level: 0.7010
Should price action for the AUD/USD breakdown below 0.7025 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7010
- Take Profit Zone: 0.6940 – 0.6960
- Stop Loss Level: 0.7025
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