LiteForex - Analytics

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    Analytical review for AUD/USD as of 06.06.2016

    Technical indicators of the currency pair:

    Prev. closure: 0.7368;
    Daily range: 0.7316-0.7371;
    Opening 0.7369;
    52-week range: 0.6824-0.7851;
    Annual profit: -6.11%;
    Previous day's change (%): 1.92;

    Analytical review:

    • The Australian dollar has grown by over 150 points against the US dollar since the beginning of June. Following Friday's trading session the pair grew 1.92%;
    • Important statistics on the US economy were released last week. According to Labour Department, non-farm payrolls amounted to 38,000 in May against a market expectation of 164,000. This has been the worst indicator since September 2010;
    • The Australian dollar belongs to commodity currencies. A demand for this currency grows as oil quotes grow. WTI oil grew by over 1% during the Asian trading session;
    • The Commitments of Traders Report shows that important market operators have increased the number of their long positions by 8614 contracts to 54232 contracts. The number of short positions amounts to 45704 contracts;
    • A news factor is worth attention this week: Fed Head Yellen's statement (today) and Australian interest rate decision (Tuesday). These events may affect market volatility.

    Summary:

    • US labour market weakness, lower expectations of an eventual rate rise by Fed at June's meeting and oil quotes growth support demand for the Australian dollar;
    • According to the Commitments of Traders Report, important operators have substantially boosted their long positions;
    • So, we expect that the AUD will consolidate against the USD in the nearest future. We advise you to search for market entry points to open long positions.

    Trading tips for AUD/USD

    Key levels:
    Support levels: 0.7295, 0.7235
    Resistance levels: 0.7365, 0.7400

    Medium-term trading, H1
    The currency has broken and steadied above a local resistance level of 0.7295. Once the demand zone of 0.7295-0.7315 steadies and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 0.7360, 0.7395 и 0.7450, with Trailing Stop applied.

    Medium-term trading, H1
    Medium-term trading, H1

    Short-term trading, M15
    The currency is trading at 0.7315-0.7350. We advise you to search for market entry points once this zone is broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

    Short-term trading, M15:
    Short-term trading, M15


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