[Break or respect] The fate of $AUD ahead of retail sales data
We previously mentioned the technical reasons in AUD/USD as follows:
1. The market is currently hovering at 0.7350 area (the downtrend channel resistance is seen in the chart)
2. The confluence of resistance lies in 4H chart (200 SMA and 61.8% fib.retracements) at 0.7350 area
Note that tomorrow asian fx sessions will deliver the AUD retail sales data and China CPI, which will be the main driver for AUD to break or respect the resistance levels.
Given the upcoming risk events and technical developments, we still expect the AUD to be below 0.7400 handle. We anticipate the price to overshoot to the upside in the case that the numbers are much better than expected.
We outline two strategies as follows:
1. Sell limit at 0.7370
S/L: 0.7400
T/P: 0.7280-0.7290
Risk : Reward: > 1:2
2. Entry at market price 1H before the release, and put the tight stops to target 0.7280. We recommend risking very small amount of your capital.
1. The market is currently hovering at 0.7350 area (the downtrend channel resistance is seen in the chart)
2. The confluence of resistance lies in 4H chart (200 SMA and 61.8% fib.retracements) at 0.7350 area
Note that tomorrow asian fx sessions will deliver the AUD retail sales data and China CPI, which will be the main driver for AUD to break or respect the resistance levels.
Given the upcoming risk events and technical developments, we still expect the AUD to be below 0.7400 handle. We anticipate the price to overshoot to the upside in the case that the numbers are much better than expected.
We outline two strategies as follows:
1. Sell limit at 0.7370
S/L: 0.7400
T/P: 0.7280-0.7290
Risk : Reward: > 1:2
2. Entry at market price 1H before the release, and put the tight stops to target 0.7280. We recommend risking very small amount of your capital.
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