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AUD/USD Forecast 12 Apr 2016

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AUD/USD Forecast 12 Apr 2016
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The Australian dollar continues to strengthen against the US dollar

The Australian dollar used the temporary weakness of the US dollar and gained 44 points yesterday.

Yesterday the WTI crude oil added 1.69% and 5.67% on Friday. Iron ore rose to 54.8 US dollars per ton (2.46%). Also, the Australian index business sentiment showed an increase to 6 from 3 in February.

But the oil traders can lose their optimism very soon. The oil summit in Kuwait on 17 April is the key, where oil producers want to decide on the freezing of production volumes. And, as expected, no agreements will be met.

How to trade

On the hourly chart, the pair AUD/USD has the key levels: 0.7716, 0.7663, 0.7636, 0.7590. Here we monitor the formation of the rising structure from 7 April. If the pair rises above level 0.7636, it may continue to grow to the area of 0.7663. If the pair falls below 0.7590, it is expected to fall below 0.7544.

We would buy CALL options if the pair AUD/USD rises above 0.7636. We would buy PUT options if the pair falls below 0.7590.

Expiry time: 20:00 GMT

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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