Buy above 0.7332. Stop loss at 0.7290. Take profit at 0.7426.
Reason for the trading strategy (technically):
Price has started to bounce up nicely from our buying level. The plan today is to remain bullish above major support at 0.7332 (Fibonacci extension, Elliott wave theory) and we expect a bounce above this level to at least 0.7426 resistance, (Fibonacci retracement, horizontal swing high resistance).
Stochastic (55,5,3) has made a bullish exit meaning that a further rise can be expected.
Correlation analysis: AUDUSD has a strong positive correlation with NZDUSD which means they usually move together. We are expecting a rise on AUDUSD and a rise on NZDUSD which goes well with the positive correlation expected.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go against our bullish AUDUSD view today hence is it best to exercise caution on this trade.
Reason for the trading strategy (technically):
Price has started to bounce up nicely from our buying level. The plan today is to remain bullish above major support at 0.7332 (Fibonacci extension, Elliott wave theory) and we expect a bounce above this level to at least 0.7426 resistance, (Fibonacci retracement, horizontal swing high resistance).
Stochastic (55,5,3) has made a bullish exit meaning that a further rise can be expected.
Correlation analysis: AUDUSD has a strong positive correlation with NZDUSD which means they usually move together. We are expecting a rise on AUDUSD and a rise on NZDUSD which goes well with the positive correlation expected.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go against our bullish AUDUSD view today hence is it best to exercise caution on this trade.