AUD/USD is all set to rise again as it is above the 200 moving average. During this quarter AUD/USD stayed above the 200 moving average. Australia’s dollar was as little as 0.6 percent above its 200-day moving average on Aug. 8, the day after data showed the nation’s jobless rate jumped to a 12-year high last month. RBA Governor Glenn Stevens said today the economy needs an injection of confidence rather than lower interest rates to stimulate growth, signaling policy will probably remain unchanged. The Aussie traded at 92.85 cents as of 7:07 a.m. in London.
The Aussie should remain strong for the rest of the quarter as easing in other developed nations increases the allure of Australian assets, said Junichi Ishikawa, a Tokyo-based analyst at IG. The Aussie may fall below its 200-day moving average in October after the Federal Reserve ends it asset-buying program, he said. Aussie Dollar is a commodity currency. Did you read the post on how Aussie Dollar is benefiting from ECB policy? Now the above post was written 2 years back. Lot of water has passed under the bridge. Watch the video below on AUDUSD technical analysis 2017.
As said above AUD is a commodity currency. Australia is a big exporter of commodities to China and other countries. So when you trade AUD pairs like AUDUSD, you should first look at the commodity market. Now when you are doing technical analysis, it is not important for you to do fundamental analysis. Just trade what the charts are telling you to do. Just look at the chart patterns and they will give you the clue what the market is planning to do in short term. You don’t need to know that copper price is going up or down and how this is going to affect Aussie Dollar.
Did you take a look at our Candlestick Trading System? Our Candlestick Trading System trades candlestick patterns in an unconventional manner. Candlestick patterns are very important in technical analysis. Just focus on them and you will understand the buyer/seller sentiment in the market. Master candlestick chart patterns and you will see how you can become a highly successful trader. When you are doing technical analysis don’t try to predict the market over a long horizon something like 2-3 months. Just do technical analysis on a daily basis. Markets keep on changing their behavior on a daily basis. There is a lot happening on daily basis. So predicting the market on a monthly horizon is not a good idea.