AUD/USD:Bulls are rocking and playing at front foot.
Overview:– The pair has become has more convincing to buy once again as we can see that a steep upside momentum followed by a pull back, all this set up is just for long the pair as we know that in the uptrend market buy on dips will be profitable strategy. A massive bullish storm on the daily chart indicates that bulls are leading in the game and playing at their front foot. The bulls are dominating the bears at every nook and corner, and the hope for further bullish sentiments is increasing by leaps and bounds.
Fundamental Analysis:- AUD/USD was the outperformer overnight with a steady drift higher throughout London to 0.6867 when the FOMC statement was digested and then further on the back of the presser where Federal Reserve’s Chairman, Jerome Powell, dropped the bomb by doubling down on his opinion that inflation would have to be ‘significantly’ and ‘persistently’ higher before Fed rates could be moved up again. On tariffs, in recent trade, we have very little to go on and it’s a waiting situation as US President Donald Trump will meet with top advisors today and likely make a subsequent decision to either ‘twist or hold’ in what will be very crucial game play.
Technical Analysis:-
From technical prospective we can see that pair is receiving the demand pressure from the 50 EMA line which is providing us bullish signal and a recent bullish marabuzo candlesticks above all the major and minor EMA lines, which is providing us further bullish signal. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 0.6800 level remains intact.
The 0.6930 level is the only stumble block for bulls, if bulls will clear this level then 0.7000 and 0.7100 will be like a cake walk journey for bulls. Today’s closing matter a lot, if bulls break the mentioned stumble block then we may see a new phase of bulls run, on contrary if bulls unable to break the 0.6930 level then we may see reversal signal and pair may come back to south side.
A bullish crossover on the MACD crossover is verifying this upside move and RSI is also rising up above the 50 level which is providing us bullish signal.
What next:- Aggressive traders may go for long at the current levels and positional traders are advised to wait for the breakout of 0.6930 level. Odds are in favor of bulls. Intraday bias remains bullish on the pair as long as pair is sustaining above the 0.6800 level. The 0.6800 level is the key support level followed by 0.6750 level where as 0.6950 level is the key resistance level followed by 0.7000.
Trade idea:- Based on chart and studies above we can suggest that buy at 0.6870-6880 target is 0.6980 and 0.7050 with the tight stop loss of 0.6800.
