- 1 AUD/USD – Technical Analysis for Australian Forex Brokers.
AUD/USD – Technical Analysis for Australian Forex Brokers.
Australia – House Price Index
On Wednesday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the House Price Index (HPI), which measures the changes in the selling price of houses in the 8 state capitals in Australia.
Since rising house prices indicate that investors are confident about purchasing houses and vice-versa, Forex traders consider the HPI to be a leading indicator of investor confidence in the country. The HPI is usually released every three months in a quarter-over-quarter format.
Last month, the Australian HPI suggested that house prices in Australia’s 8 state capitals have increased by 1.5% and the forecast for this month is set at an additional increase of 2.4%.
United States – Unemployment Claims
On Thursday, at GMT 1:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.
Forex investors consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.
Last week, the US unemployment claims figure came out at 240,00 and the forecast for this week is set at an increase to 241,000.
Trade Recommendation for the AUD/USD
Since December 29, 2016, the AUD/USD remained in a strong uptrend and climbed up by around 570 pips in the process. However, the AUD/USD found strong resistance as soon as it reached near the 0.7725 level. Although the AUD/USD penetrated this resistance several times in the last few weeks, so far, the bulls have failed to close above this level on the daily timeframe.
As the Australian HPI is expected to increase once again over the last month, but the US unemployment claims figure is expected to remain almost same as last week, we believe it would set a bullish fundamental outlook for the AUD/USD this week. Hence, if the AUD/USD price closes above the 0.7725 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 Australian Forex brokers, as soon as it is trading above the 0.7725 level. A possible profit target for this trade would be around the 0.7595 level, which is the 161.8% Fibonacci retracement level of the last bearish swing. On the other hand, Forex traders should consider placing a stop loss order below 0.7645.
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