Day four: our AUD/USD trade

Following on from my potential trade idea yesterday, having held under the 55-day moving average (red line) well over the last few days, AUD/USD seems to be finding good buying support at the rising uptrend drawn from the May 2 low.

As you can see from the blue line, the 200-day moving average (0.9172) would be a near-term target on a break of the rising trend, which could take the pair to my initial target on the trade of 0.9155.

The trade has started off on the right foot, having fallen to 0.9230 at the time of writing, but I am going to continue with my potential stop loss at 0.9315 for now.

Today’s Q1 CAPEX numbers will be key in determining if AUD/USD is to break the support I have highlighted, and naturally this print will have strong ramifications not just on upcoming GDP expectations, but also whether there is scope for the RBA to re-adopt its easing bias. 

IG Charts

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