Home Forex FX Play of the Day: U.S. Superior GDP to Spur AUD/USD Reversal?

FX Play of the Day: U.S. Superior GDP to Spur AUD/USD Reversal?

FX Play of the Day: U.S. Superior GDP to Spur AUD/USD Reversal?


The U.S. superior GDP report is developing immediately!

Will downbeat development figures spur a reversal on AUD/USD?

Take a look at this chart sample and inflection factors I’m watching on the hourly chart.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Foreign exchange Chart by TV

It seems to be like Aussie bears are struggling to take this pair under the .6725 help space!

Value is now testing the double backside neckline on the .6800 main psychological mark and R1 (.6810), and a break larger may verify {that a} reversal from the selloff is underway.

In that case, AUD/USD may climb by the identical top because the chart formation, which spans roughly 75 pips.

This ought to be sufficient to take it near the following upside barrier at R2 (.6890) and even larger, however it’s additionally price noting that the pair strikes an common of 65.5 pips per day.

Technical indicators aren’t so bought on a bullish run, although. Stochastic is already within the overbought area to counsel that consumers are exhausted, however the oscillator has but to maneuver south to verify that sellers are again.

A transfer under the pivot level (.6770) could possibly be sufficient to indicate that Aussie bulls aren’t able to cost but.

The 100 SMA is under the 200 SMA to counsel that bearish strain is in play, however the pair has climbed above each indicators as an early sign of bullish vibes.

It seems to be just like the prospect of extra stimulus from China is sufficient to maintain commodity currencies and different threat property afloat in the meanwhile. In the meantime, the Fed’s stubbornly hawkish bias appears to be doing extra hurt to the greenback than good, as merchants are cautious of U.S. recession dangers.

The upcoming U.S. superior GDP report is price preserving tabs on when buying and selling AUD/USD, as weak development figures may discourage the Fed from tightening additional.

Do you assume this pair is in for extra positive factors from right here?

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