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AUD/USD Forecast 06 Jan 2016

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AUD/USD Forecast 06 Jan 2016
4.9/5 of 4 ratings

The US Dollar is strengthening

The US Dollar is strengthening against most of its counterparts and the Australian Dollar is one of them. Lately the pair has been traveling south, with just brief periods of upside movement but overall the control belongs to the sellers.

So far this year we didn’t have any major Australian economic news announcements and today is no exception but the pair will be affected by a first look into U.S. jobs situation with the release of the ADP Non-Farm Employment Change.

This report is generated by a privately owned company and tries to mimic the more important Government data that comes out later in the week. Even if today’s indicator has a lower impact, higher numbers than analysts’ consensus of 193K (previous 217K) can strengthen the US Dollar and take the pair lower.

From a technical point of view, the pair is in a medium term downtrend and we anticipate further downside movement but it must be noted that price has travelled a long distance without a significant retracement and this increases the chances of a bullish (up) move.

The first potential target for this pullback is represented by the zone around 0.7130 which is minor resistance but a break of this area would open a door for a move into 0.7160. We expect the downside movement to resume at 0.7130 but if this level is broken, Puts should be entered only if 0.7160 is touched and the Relative Strength Index becomes overbought (above its 70 level).

How to trade

Enter end of day Puts at 0.7130 but if this level is broken to the upside, wait until the pair reaches 0.7160 and enter Puts there. Alternate scenario: if price travels to 0.7070 without retracement, enter end of day Calls when the level is touched.

Expiry time: 21:00 GMT

Comments

Nasrin's picture

Very Potential Do Follow target to make money its. Upside and Price are to negociable to trade easily. So effective post to continue trading.Different scenario: when price journeys to help 0. 7070 without having retracement, enter in conclude associated with day time Phone calls in the event the amount will be touched.WOWW

Nasrin

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.

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