It’s a quiet week for US data (and a holiday today), so for AUDUSD most of the action with stem from local Labor market data and China GDP, which are both due out on Thursday.
It’s amazing how China manages to get quarterly economic growth data out so quickly: other developed nations take weeks before even issuing an estimate.
Not only that, the number is likely to come in very close, if not right on, the government forecast.
Nevertheless AUD traders will need to keep an eye on it, just in case.
Management and risk description
The Aussie dollar has rallied nicely this year, consistent with my bullish forecast and analysis (refer daily chart below).
It advance from its 0.6825 low of January 2016 resembles a rising wedge pattern and there is still opportunity for AUD to test wedge resistance in the low/mid 0.8200’s over the coming weeks (refer Weekly chart below).
In the short term, support lies at 0.7900/0.7885, 0.7850 max. to enable uptrend to soon extend toward my 0.8000/0.8035 target area.
Entry: Today, the AUD seen as a buy.
Stop: just under 0.7850, initially.
Target: 50% at 0.7993 and 50% at 0.8028
Time horizon: This week
AUDUSD daily chart (click to expand)
AUDUSD weekly chart (click to expand)
Source: both charts, ThomsonReuters
— Edited by Adam Courtenay
Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here