The Australian dollar was seen consolidating against the US dollar. The AUDUSD pair recently traded below the 0.9300 support level, and now trying to settle back above the mentioned level. I think there is a chance that the pair might trade a bit higher from the current levels in the short term. So, we should be looking for buying opportunities moving ahead.
It is likely that the AUDUSD pair is forming a diamond pattern on the 4 hour chart, as can be seen below. If the pair breaks higher, then there is a possibility of a move higher of around 60-80 pips. So, if the pair breaks above the pattern and settles above it, then we can enter into a buy trade. Remember, this trade is valid as long as the pair is trading above the last low created.
Initial target should be around the 0.9350 level, and final target could be around the 0.9370 level. Stop should be below the 0.9260 level.
Reviewing yesterday’s events and trades
This week the US dollar opened with a gap higher against most major currencies, including the Euro and the British pound. The GBPUSD pair managed to close the gap, but the EURUSD pair is still trading lower. The German IFO business climate index was released during the London session yesterday, which missed the expectations. The pair is consolidating in a range, and it looks like it might continue trading lower. The pairs like NZDUSD and AUDUSD are also trading lower Intraday.
Fundamental Outlook for the day
Today, there are a couple of economic released lined up during the NY session in the US. The US durable goods orders data, CB consumer confidence and the S&P/Case-Shiller House Price Index will be released. If the data comes on the negative side, then there is a chance of a correction in the short term. Moreover, the Australia’s construction work done figures will be published during the next Asian session, which could impact the Aussie dollar. Let’s see how the major pairs behave in the coming sessions.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPCHF, AUDCAD, AUDUSD, NZDUSD, GBPUSD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
