The US dollar traded lower against the Australian dollar during the Asian session, as the RBA failed to move the Aussie lower. The AUDUSD pair traded around the 0.8800 level, and currently struggling to break it. There is a chance that the pair might correct lower from the current or a bit higher levels, which I think would present us a nice buying opportunity. So, let us wait for the right time to enter into a buy trade.
There is a major support area around the 0.8710-25 levels from where the Aussie dollar might gain traction in the short term. So, if the AUDUSD pair slides or corrects lower from the current levels towards the mentioned support area, makes a stop and forms a bullish divergence, then we can jump into a buy trade. Remember, we need not to rush to buy AUDUSD, but wait instead for the right time.
Initial target should be around the 0.8820 level, and final target could be around the 0.8880 levels. Stop should be placed below the last low.
Reviewing recent events and trades
The US dollar finally got under some bearish pressure overnight, and it traded lower against the Euro, New Zealand dollar, Australian dollar and Japanese yen. However, we cannot call this move as a reversal, as we need important signs before calling it a top in the US dollar in the short term. There is a chance that the US dollar might gain traction again in the coming sessions. Only a break of critical levels might call for more losses in the US dollar. The EURUSD needs to clear the 1.2680-1.2700 area for a major upside correction. Similarly, GBPUSD needs to clear 1.6120 level for more gains.
Fundamental Outlook for the day
Today, the US Investor’s Business Daily (IBD), TechnoMetrica Institute of Policy and Politics (TIPP) Economic Optimism Index and JOLT’s job openings for August will be released. In addition, two members will also be delivering a speech. So, we can witness some moves in the US dollar, but not any major break as there are several important events lined up in the coming days. Moreover, the Chinese HSBC services PMI is scheduled for release during the next Asian session. This particular release might cause some moves in the pairs like AUDUSD and NZDUSD.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
