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AUD/USD Signal - US GDP q/q - 29 Nov 2016

Signal details
Entry Price: 
0.7525
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
21:00 GMT
How we trade
5/5 of 4 ratings

The second estimate for the U.S. GDP will be released today with expectations showing a minor upside revision. The third quarter GDP is expected to rise 3.0% on an annualized basis, higher from the first estimates of 2.9%. This could be bullish for the U.S dollar which also shows the technical bias to the upside. As a result, commodity linked currencies such as AUD/USD could remain under pressure in the near term.

We would be purchasing daily puts on AUD/USD at 0.7525 region as we expect AUD/USD to give up its recent gains. In the near term, support at 0.7437 is likely to be tested in the near term, thus validating the downside bias. Currently, the AUD/USD is seen pushing higher and the short term gains could see the Australian dollar rise towards the resistance level near 0.7525 – 0.7550. A reversal here will confirm the declines in AUD/USD towards 0.7437 thus forming the bias to purchase daily puts.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.