AUD/USD DTF Time Frame – Technical & Fundamental Analysis
Technical Outlook:
On the daily time frame, AUD/USD has been consolidating after a strong bearish move that drove price down to the 0.59000 level. Following this, significant buying pressure led to a breakout above the anticipated major key resistance at 0.63500.
Currently, price action is indicating accumulation above this critical level, confirmed by a bullish engulfing candle. This suggests that buyers may continue to gain momentum in the near term.
However, it’s worth noting that liquidity has not yet formed, which indicates the potential for a liquidity hunt between defined zones. Based on this, our current strategy is:
Buy Limit Order: 0.63080 (within the liquidity zone) to capitalize on the opportunity, aiming for a higher reward with a 1:4 risk-to-reward ratio.
Stop Loss: 0.62560
Take Profit: 0.65230 (next minor key resistance)
Risk-Reward Ratio: 1:4
This setup aligns with the broader bullish structure forming on the daily time frame.
Fundamental Outlook:
Australia’s positive fundamentals are contributing to a bullish outlook for AUD/USD:
Commodity Price Recovery: A significant rebound in global commodity prices, especially for iron ore, coal, and copper, has supported Australia’s key exports, boosting demand for the AUD.
China’s Economic Rebound: As Australia’s largest trading partner, China’s economic recovery—marked by increased industrial output and government stimulus—has led to a surge in export demand, which is also strengthening the Australian dollar.
Domestic Stability in Australia: The Australian economy is showing signs of stabilization, with stronger-than-expected employment data and rising consumer confidence. These developments reduce the likelihood of aggressive rate cuts by the Reserve Bank of Australia (RBA).
On the other hand, the U.S. fundamentals are showing some weakness:
Weaker-than-Expected Unemployment Claims: The latest U.S. Unemployment Claims came in at 222K, higher than the forecast of 215K and previous 215K, indicating a slight softening in the U.S. labor market. This adds further downward pressure on the USD, especially as concerns over economic momentum rise.
Conclusion:
Given the strong bullish technical setup and positive fundamentals for the Australian dollar, combined with the recent weakness in U.S. employment data, the outlook for AUD/USD remains bullish.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
Technical Outlook:
On the daily time frame, AUD/USD has been consolidating after a strong bearish move that drove price down to the 0.59000 level. Following this, significant buying pressure led to a breakout above the anticipated major key resistance at 0.63500.
Currently, price action is indicating accumulation above this critical level, confirmed by a bullish engulfing candle. This suggests that buyers may continue to gain momentum in the near term.
However, it’s worth noting that liquidity has not yet formed, which indicates the potential for a liquidity hunt between defined zones. Based on this, our current strategy is:
Buy Limit Order: 0.63080 (within the liquidity zone) to capitalize on the opportunity, aiming for a higher reward with a 1:4 risk-to-reward ratio.
Stop Loss: 0.62560
Take Profit: 0.65230 (next minor key resistance)
Risk-Reward Ratio: 1:4
This setup aligns with the broader bullish structure forming on the daily time frame.
Fundamental Outlook:
Australia’s positive fundamentals are contributing to a bullish outlook for AUD/USD:
Commodity Price Recovery: A significant rebound in global commodity prices, especially for iron ore, coal, and copper, has supported Australia’s key exports, boosting demand for the AUD.
China’s Economic Rebound: As Australia’s largest trading partner, China’s economic recovery—marked by increased industrial output and government stimulus—has led to a surge in export demand, which is also strengthening the Australian dollar.
Domestic Stability in Australia: The Australian economy is showing signs of stabilization, with stronger-than-expected employment data and rising consumer confidence. These developments reduce the likelihood of aggressive rate cuts by the Reserve Bank of Australia (RBA).
On the other hand, the U.S. fundamentals are showing some weakness:
Weaker-than-Expected Unemployment Claims: The latest U.S. Unemployment Claims came in at 222K, higher than the forecast of 215K and previous 215K, indicating a slight softening in the U.S. labor market. This adds further downward pressure on the USD, especially as concerns over economic momentum rise.
Conclusion:
Given the strong bullish technical setup and positive fundamentals for the Australian dollar, combined with the recent weakness in U.S. employment data, the outlook for AUD/USD remains bullish.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.