Market Research and Analysis

Daily Market Analysis Report

Mon, 19 Dec 2016 03:14 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 0. 7550 – 0.7275
  • Support & Resistance Levels:
  • R3: 0.7468
    R2: 0.7432
    R1: 0.7411
    Pivot Point: 0.7375
    S1: 0.7339
    S2: 0.7318
    S3: 0.7282
  • Trading Recommendation:
  • Sell Below: 0.7325
    Take Profit:
    1st @ 0.7275
    Stop Loss @ 0.7345

AUDUSD

AUDUSD starts trading in the early Asian session, testing the bottom of the bearish trend from the 0.7520 sell-off, with the pair trading at 0.7276 and a low of 0.7270. AUDUSD acquired the effect of the dollar’s strength last week with the antipodeans being the worst of the lot. The focus remained with the Fed and their fresh hawkishness following the first rate hike since this time last year and the dollar has added fresh highs in a continuation of the Trump rally.

19-dec-aud
Fundamental Overview

The Australian federal government’s mid-year fiscal update is expected to show a deteriorating deficit as broad economic weakness offsets commodity price gains, explained analysts at Westpac, adding that markets will be watching for any rating agency reactions. Previously, the seasonally adjusted estimates (monthly change) Employment increased 39,100 to 11,973,200. Full-time employment increased 39,300 to 8,166,200 and part-time employment decreased 200 to 3,807,000. Unemployment increased 17,000 to 725,200.

Today on Monday, the investors are recommended to monitor the following events:

AUD

  • Mid-Year Economic and Fiscal Outlook
  • CB Leading Index m/m

USD

  • Flash Services PMI

Technical Overview

AUDUSD trades around 0.7300, trading just below 50 EMA as the stronger Dollar keeping the pair bearish. The RSI value is slightly shifted further lower to 28 from 32, representing a potential sell in a pair. Today, the AUDUSD can find a resistance at 0.7320 and 0.7360, further the supports remains at 0.7275 and 0.7240.

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Risk Warning:

There is a substantial risk of loss in trading commodity futures, option and off-change foreign currency products.
Read our General Risk Disclosure.