AUD/USD “Aussie” heading back to our area of interest “ previous zone “. We may expect the downtrend continuation if the pair hits the resistance zone, though let us go through the analysis and find out.
Forex Economic Data
OPEC Meeting Hearings 10/4/2021
OPEC nations represent around 40 of the world’s oil funds and are unified in their oil product positions. With so substantial control over oil’s inventory- side, shifts in their production ranks can have a significant impact on oil prices.
Organization of Petroleum Exporting Countries (OPEC).
Reserve Bank of Australia (RBA) Rate Statement “AUD”. 10/5/2021
It’s among the primary tools the RBA Reserve Bank Board uses to communicate with investors about financial policy.
It contains the fate of their decision on interest rates and commentary about the economic conditions that affected their decision. Most importantly, it discusses the economic outlook and offers leads on the fate of coming decisions.
The Institute for Supply Management (ISM), Purchasing Managers’ Index (PMI) “USD”. 10/5/2021
A Survey of about 250 purchasing supervisors asks informants to rate the relative situation of business conditions including employment, labor, new orders, prices, supplier deliveries, and budgets.
It’s a leading index to economic health– businesses respond fast to market conditions. Their purchasing directors hold possibly the most current and applicable perception of the company’s view of the economy.
Pair Observation
The pair has been in a downtrend over some months, Trading in a bearish Broadening chart pattern. On 9/06/2021 price made a high, tested and respected the bearish trend-line and a strong key level of 0.74500 serving as a resistance zone then price rallied down all throughout the month making Higher lows and lower lows.
However, the price consolidated for a few days after it broke and tested key level 0.73500 then traded into the support zone.
Moreover, with the upcoming data release from both currency pairs, we may be expecting a good momentum and precisely a good and high probability setup for setup/ entry.
AUD/USD
Forex Technical Indicator
From the chart above it is clear that our stochastic indicator is precise of the over-sold zone as a result of buyers who jumped in and pushed the price up.
Currency Correlation
Due to the high rate of economic data release, we may pay attention to data release and watch out for market behaviors on EUR/USD, NZD/USD, and GBP/USD.
Conclusion
If the key level is tested price may likely bounce off and rally down with good bearish momentum. What do you think about the idea? Feel free to drop your suggestions below.
“Chinedu is a Trader and content writer, With a passion for educating others about the financial markets. Through his writing, he works tirelessly to share insights and knowledge gained from years of experience trading in the financial market. He is dedicated to helping others achieve success in their journey by providing valuable information on what works and what doesn’t.