AUD/USD: Approaching key resistance 0.70500, Where to next?
Good afternoon Traders and welcome back to EverythingFX.
The Australian Dollar is currently trading at 0.70136 against the US Dollar during today's London session.
Looking on the monthly timeframe we can see the June candlestick closure printed a nice hammer candlestick off of our weekly support at 0.68750 showing us that the buyers are back in control. Dropping to a weekly timeframe we can see we had that weekly candlestick closure back above that all-important psychological level of 0.70000.
Now that we have analysed the higher timeframes we can then drop down to a lower timeframe to find the highest probability of execution to take this pair higher. Price is fairly high at the moment and as traders, we are looking to buy from the lowest possible point. I would be looking for either a break of the resistance of 0.70500 a nice small re-test to then take price higher or a re-test of 0.70000 providing us with an entry to go higher. We have a minor level of dynamic resistance in and around 0.71000 with our next level 100 pips away at 0.72000. What would invalidate my bias is a clean daily break back below 0.70000 which could see us head back to the lows at 0.68750.
Fundamentally we had the Trade balance coming out in Australia at 5.745B vs a consensus 5.250B which was a good boost for the economy also having the RBA Gov Lowe proving to be less dovish than anticipated assisting in strengthening the currency. Later today we have Initial Jobless Claims out in the US so do trade with caution as well. Stay tuned to our market news section as well as our Social Media accounts for rapid updates.