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AUD/USD Forecast 25 May 2016

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AUD/USD Forecast 25 May 2016
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The pair AUD/USD continues to show a downward movement since 21 April.

Yesterday's statement by the head of the Reserve Bank of Australia has only confirmed that current inflation expectations allow the regulator to carry out a soft monetary policy. The chances of lowering rates this summer are quite large.

The labor market also raises many questions. The latest report showed that despite the increase in the number of jobs, it is caused solely by workers on part-time, but those who took a full-time was less than 9300. We have seen this trend for the 3 months.

In the nearest time, the pair may still show a slight correction after the lengthy sales. However, we recommend use it to enter the market to buy Puts.

How to trade

The pair AUD/USD has the several key levels on the hourly chart: 0.7246, 0.7222, 0.7180, 0.7127. If the pair falls below 0.7180, we would buy put options. The short-term upward movement, as well as the consolidation, is possible in the range of 0.7222 - 0.7246. In this case, we would buy call options.

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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