Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian Retail Sales for August decreased 1.7% monthly. Economists predicted a decrease of 2.5% monthly. Forex traders can compare this to Australian Retail Sales for July, which decreased 2.7% monthly.
The US S&P/Case-Shiller Composite 20 for July is predicted to increase 1.70% monthly and 20.00% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for June, which increased 1.80% monthly and 19.10% annualized. US Consumer Confidence for September is predicted at 114.5. Forex traders can compare this to US Consumer Confidence for August, reported at 113.8.
The forecast for the AUD/USD turned bullish after this currency pair reversed its correction with a higher low. Price action moved back into its Ichimoku Kinko Hyo Cloud, but volatility is expected to increase due to a moderately bearish stance. Adding to upside pressures is the ascending Kijun-sen, while the Tenkan-sen remains flat. The breakout of the CCI out of extreme oversold territory fuels bullish momentum. Can bulls wrestle control from bears and force 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 0.7280 to 0.7340 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7300
- Take Profit Zone: 0.7535 – 0.7600
- Stop Loss Level: 0.7215
Should price action for the AUD/USD breakdown below 0.7280, PaxForex the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7215
- Take Profit Zone: 0.7100 – 0.7140
- Stop Loss Level: 0.7280
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.