Market Research and Analysis

Daily Market Analysis Report

Thu, 12 Jan 2017 03:43 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 0. 7550 – 0.7275
  • Support & Resistance Levels:
  • R3: 0.7407
    R2: 0.7375
    R1: 0.7355
    Pivot Point: 0.7323
    S1: 0.7291
    S2: 0.7271
    S3: 0.7239
  • Trading Recommendation:
  • Buy Above: 0.7430
    Take Profit:
    1st @ 0.7490
    Stop Loss @ 0.7410

AUDUSD

AUDUSD is trading at 0.7360, down -0.13% on the day, having posted a daily high at 0.7398 and low at 0.7352. On Thursday, the pair soared to add 24 pips to the opening price of 0.7439, having posted a daily high at 0.7453 and low at 0. 7429. The overall high to a low fluctuation in AUDUSD remained around 28 pips. Whereas, the support in Australian Dollar is extended by the China’s Producer Price Index (PPI) that is released beating the expectation of 4.6%. Aussie also remains supported on bullish momentum in the Gold prices, as it has highly positive correlation with it.

12 Jan AUD
Fundamental Overview

Australian retail turnover rose 0.2 per cent in November 2016, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. This follows a rise of 0.5 per cent in October 2016. In seasonally adjusted terms, there were rises in food retailing (0.4 per cent), clothing, footwear and personal accessory retailing (1.7 per cent) and household goods retailing (0.2 per cent). There were falls in cafes, restaurants and takeaway food services (-0.8 per cent), department stores (-0.3 per cent) and other retailing (-0.1 per cent). The trend estimate for Australian retail turnover rose 0.4 per cent in November 2016 following a 0.4 per cent rise in October 2016. Compared to November 2015 the trend estimate rose 3.4 per cent.

AUD

  • No Economic Event Expected

USD

  • President-Elect Trump Speaks
  • FOMC Member Dudley Speaks

Technical Overview

AUDUSD soared to break above the 61.8% retracement at 0.7385, adding around 71 pips. Further, the pair staying above a 50 period EMA. As suggested earlier, the pair is likely to target the previously violated level of level of 0.7490 once it breaks above 0.7405. The RSI value has also shifted to at 78 from 68. Today, the AUDUSD can find a resistance at 0.7490 and 0.7525, further, the supports remains at 0.7445 and 0.7385.

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