LiteForex - Analytics

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    Analytical review of the currency pair AUD/USD on 21.03.2016

    AUD/USD

    Technical data of the currency pair:

    Previous closing: 0.7608;
    Daily range: 0,7569-0,7603;
    Opening: 0.7596;
    52- week range: 0.6824-0.8168;
    Annual revenue: -2.39%;
    Change in % for the previous day: -0.63.

    Analytical review:

    • Following the release of important US statistics on Wednesday March 16, the Australian dollar has grown against the USD. (over 200 points).
    • Important data on Australian economy released last week showed that unemployment rate in February fell by 0.2% to 5.8%. Stock markets of the country have also increased due to strengthening in the sectors of energy, finance and IT.
    • The Australian dollar is a commodity currency. Positive dynamics in the oil process will help strengthening of the currency. Since mid- February, the price of crude oil WTI rose by 13 USD.
    • The “Commitments of Traders” shows significant increase of long positions by 3564 contracts, up to 30256 contracts.
    • This week the data on US oil reserves will become known on Wednesday and the US GDP on Friday. This data can affect dynamics and volatility in the market.

    Summary:

    • Positive Australian statistics, ambiguous situation in the world economy and possible correction on the commodity market increase demand for the AUD. According to “COT” large speculators have increased the number of long positions.
    • In the near future the AUD will strengthen against the USD. We recommend to open long positions.

    Trading tips for the currency pair AUD/USD

    Medium-term trading:
    the moment the currency has broken down resistance level of 0.7585. In case of maintenance of levels of 0,7520-0,7585 and respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 0,7650, 0,7720 and 0,7790 with the use of trailing stop.


    Short-term trading: the moment on the chart with timeframe 15М the AUD is traded in the range of 0,7570-0,7610. We recommend to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.



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