(MENAFN- Daily Forex) Bullish View
Buy the AUD/USD pair and set a take-profit at 0.6350. Add a stop-loss at 0.6200. Timeline: 1-2 days.
Bearish View
Sell the AUD/USD pair and set a take-profit at 0.6200. Add a stop-loss at 0.6350.
The AUD/USD
exchange rate rose slightly as the US dollar
index (DXY) retreated modestly as the
market embraced a new normal during the Donald
trump administration. The pair rose to a high of 0.6265, up from this month's low of 0.6130.
It rose as the US dollar index continued falling, moving from this year's high of $110 to $108. Similarly, US bond yields also ettreated, with the 5-year yield moving to 4.40% and the 30-year falling to 4.80%. US equities also jumped by over 1%.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money
Australia's bond yields also moderated, with the 10-year and 15-year moving to 4.40% and 4.60%. All these numbers are reacting to the new Trump administration and its impact on the economy.
There will be no major economic numbers scheduled on Wednesday. Therefore, focus will be on the upcoming Trump's policies and the potential implication on the global economy. The most important important policy is on trade, where Trump has threatened to increase tariffs on key countries like China and other countries.
These policies may have a major impact on world trade, especially on China, the biggest consumer in the world and Australia's biggest trading partner/USD technical analysis
The daily chart shows that the AUD/USD pair dropped to the key support at 0.6130 on January 13. It then bounced back and moved to a high of 0.6265, its highest swing since Janury 7.
The pair has remained below the important support level at 0.6350, its lowest swing on August 5. It has fallen below the 50-day moving average, while the Percentage Price Oscillator (PPO) has pointed upwards.
Most notably, the AUD/USD pair has formed an inverse head and shoulders chart pattern, a popular bullish sign. The head section is at 0.6130, while the right and left shoulders are about the 0.6200 level.
The Relative Strength Index (RSI) has also moved upwards. Therefore, the pair will likely continue rising as bulls target the important resistance level at 0.6350, its highest level on August 5.
A break above that level will point to more gains, potentially to the psychological level at 0.6400. On the flip side, a move below the support at 0.6200 will point to more downside.
Ready to trade our Daily Forex forecast? Here's a list of some of the top forex brokers in Australia to check out.
MENAFN22012025000131011023ID1109118973
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.