WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: AUD/USD – Finally poised to climb higher

Posted by Edward Moya on Oct 21, 2014 9:19:00 AM

WWM AUDUSD OCT 21 2014

The Australian dollar rallied after last night’s GDP report showed that economic growth in China climbed 7.3% in the third quarter.  The release highlighted an improvement in export demand and the service sector.  Industrial production also rose 8.0% in September.  The positive data points should keep Chinese government on hold regarding implementing further stimulus measures. 

My last Aussie post highlighted that since price formed a death cross signal on September 9th, the bear market move was confirmed and price declined steadily from .9300 all the way down towards .8642.  The freefall however may be over for now as the double-bottom pattern I identified earlier is still valid.    

The daily chart for AUD/USD displays the recent consolidation between .8650 and the .8900 level.  The oversold Australian currency may see bullish momentum target .8900 level initially and eventually a test of the 50-day SMA which is at .9032.  If we see a major USD rally, critical support remains .8650.  If that level is taken out, bears may target .8450. 

The trade: Buy AUD/USD at .8800 with a stop loss at .8750 and a take profit at .8900.  The Risk/Reward Ratio is 1:2

Edward J. Moya

Technical Strategist

WorldWideMarkets Online Trading

Topics: AUDUSD, aussie, aud, Aussie Dollar, aussie trading

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!