AUD/USD right on buying level, remain bullish
Buy above 0.7632. Stop loss at 0.7608. Take profit at 0.7683.
Reason for the trading strategy (technically):
Price has reached our profit target from Thursday. We are now bullish above major support at 0.7632 (Fibonacci retracement, horizontal overlap support) for a push up to at least 0.7683 resistance once again (Fibonacci retracement, Fibonacci extension, Elliott wave structure, horizontal resistance).
Stochastic (55,5,3) is bouncing nicely above our 3.6% and 16% support levels.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. ISM Manufacturing survey. It is one of the biggest market moving economic releases because of its Prices Paid and Employment subcomponents which reflect sentiment towards inflation and labor conditions - two of the market's most significant health indicators. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD. We’re expecting forecasts of a decrease which means a bearish USD is expected, this goes in line with bullish AUDUSD strategy view.
Reason for the trading strategy (technically):
Price has reached our profit target from Thursday. We are now bullish above major support at 0.7632 (Fibonacci retracement, horizontal overlap support) for a push up to at least 0.7683 resistance once again (Fibonacci retracement, Fibonacci extension, Elliott wave structure, horizontal resistance).
Stochastic (55,5,3) is bouncing nicely above our 3.6% and 16% support levels.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. ISM Manufacturing survey. It is one of the biggest market moving economic releases because of its Prices Paid and Employment subcomponents which reflect sentiment towards inflation and labor conditions - two of the market's most significant health indicators. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD. We’re expecting forecasts of a decrease which means a bearish USD is expected, this goes in line with bullish AUDUSD strategy view.