News & Analysis

Is the AUDUSD heading for .7300?

Nov 7, 2018 | Forex News

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Today’s U.S midterm elections have shown a democratic party win in the house of representatives. The Republicans look set to hold a majority in the Senate. Results sent the USD higher to start with but things changed quickly sending risk higher to the dollar. The EUR, GBP and AUD cut losses and moved into the black. Another factor driving the AUD is news that the US and China are moving closer to a trade deal.

The AUDUSD really got going on the 1st day of November adding 133 pips after testing .7020 4 days earlier. Looking at the current AUDUSD daily chart we can see today’s move extending the current leg up that broke the long-term downtrend. It’s not a far stretch to think buyers could move back above .7300 if the current momentum can continue. Price currently sits around some short-term resistance (.7262) that’s stalling buyer momentum atm. if we see a break above .73 we think we could see .7335 – .7360 come in as stronger resistance. We’re yet to see a first pullback in the current breakout so this will be important in seeing if buyers are looking to extend this break out into a med-term rally.

Data-wise, the FOMC rate decision comes out early Friday morning, rates are expected to remain on hold. Traders will be looking to the FOMC statement for clues on future direction from the FED and how that could impact the USD.

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Sources; CNBC – All times are AEDT

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