AUD/USD Sinks as RBA Maintains Neutral Policy Stance
The #AUDUSD pair is currently in a bearish trend after breaking down from an Inverted Flag chart pattern. The consistently declining Australian Consumer Price Index (CPI) indicates that the Reserve Bank of Australia (RBA) will keep interest rates steady further, which may continue to pressure the Australian dollar.
TRADE IDEA DETAILS
CURRENCY PAIR: AUD/USD
CURRENT TREND: Bearish
TRADE SIGNAL: Sell
ENTRY PRICE: 0.6590
TAKE PROFIT: 0.6500
STOP LOSS: 0.6640
With the upcoming United States Gross Domestic Product (GDP) (Q1) data release, investors are expected to shift their funds into the US Dollar, further adding pressure on the Aussie dollar. If the AUD/USD pair drops below the March 15 low at 0.6590, it may expose the asset to March 08 low at 0.6568 followed by 02 November 2022 high around 0.6500.
Therefore, it is recommended to enter a sell position at the current market price of 0.6590, with a stop loss at 0.6640, and take profit at 0.6500. This trade provides a risk to reward ratio of 1:2.
However, it is important to note that trading involves risk, and past performance is not a guarantee of future results. It is important to practice proper risk management and to stay updated with the latest market developments to make informed trading decisions.
TRADE IDEA DETAILS
CURRENCY PAIR: AUD/USD
CURRENT TREND: Bearish
TRADE SIGNAL: Sell
ENTRY PRICE: 0.6590
TAKE PROFIT: 0.6500
STOP LOSS: 0.6640
With the upcoming United States Gross Domestic Product (GDP) (Q1) data release, investors are expected to shift their funds into the US Dollar, further adding pressure on the Aussie dollar. If the AUD/USD pair drops below the March 15 low at 0.6590, it may expose the asset to March 08 low at 0.6568 followed by 02 November 2022 high around 0.6500.
Therefore, it is recommended to enter a sell position at the current market price of 0.6590, with a stop loss at 0.6640, and take profit at 0.6500. This trade provides a risk to reward ratio of 1:2.
However, it is important to note that trading involves risk, and past performance is not a guarantee of future results. It is important to practice proper risk management and to stay updated with the latest market developments to make informed trading decisions.