AUD/USD Likely to Remain Bullish if Key Resistance Near 0.7490 is Broken

AUDUSD – Technical Analysis for Forex Trading & CFDs.

Australia – Building Approvals

On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure, which measures the changes in the number of approvals of new buildings.

Since a build permit indicates new construction work, it suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, Forex investors consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.

Last month, the building approvals figure went down by -8.7% and the forecast for this month is currently set at an increase of 2.2%.

United States – Institute for Supply Management (ISM) Manufacturing PMI

On Thursday, at GMT 3:00 p.m., the Institute for Supply Management released its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, Forex traders can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.

Last month, the ISM manufacturing PMI for the United States came out at 51.9 and the forecast for this month is set at 52.1.

Trade Recommendation for the AUDUSD

AUDUSD - Technical Analysis for Australian Forex Brokers - Nov 28, 2016

Since forming a bullish outside bar (BUOB) on November 21, the AUD/USD has climbed up around 170 pips and currently approaching the important resistance level around 0.7490.

As the Australian building approvals figure is expected to improve by 2.2%, the fundamental outlook for the AUD/USD would likely remain bullish this week. Hence, if the AUD/USD price penetrates and closes above the 0.7490 level, it would likely attract additional bullish momentum in the market.

Under the circumstances, it would be recommended that Forex traders consider placing a BUY order at market price for the AUD/USD with their Forex brokers as soon as the pair closes above the 0.7490 level on the daily time frame. A possible profit target for this trade would be around the 0.7530 level. On the other hand, Forex traders should consider placing a stop loss order below 0.7465.

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Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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