Forex Technical Analysis, AUD/USD Daily Forecast June 6, 2016


Forex Technical Analysis, AUD/USD Daily Forecast June 6, 2016

Technical Analysis – The AUD/USD pair broke out to the upside during the course of the day on Friday, clearing the 0.73 level. In fact, we got fairly close to the 0.74 level, and a move above there would be a buying opportunity for a little bit longer-term move to the upside. I think pullbacks at this point in time will be supported, so with this being the case it’s likely that we will be in a “buy only” type of market going forward as the US dollar is being punished for the anemic jobs number.

In Other View Point – AUD/USD ABOVE 200-DMA, BUY DIPS, TARGET 0.7450

AUD/USD-0.12% rides the NFP wave, hit 3-week highs of 0.7368 before paring some gains to currently trade at 0.7330.

Technical Analysis

The pair has broken above 200-DMA at 0.7254 and trades with a majorly bullish bias despite weak MI inflation forecasts.

Data released earlier today showed Australia Melbourne Institute inflation reading came in at +1.0% y/y vs prior 1.5%. While m/m was at -0.2% vs +0.1% in the previous month.

Data will be a concern for the RBA which meets tomorrow to decide policy.

The RBA is widely expected to remain on hold considering the recent upbeat GDP data, while a dovish statement cannot be ruled out.

Focus now remains on Fed Chair Yellen’s speech for fresh take on the US interest rates policy.

Immediate resistance is 0.7368 (post NFP highs), break above can see upside till 0.74 and then 0.7450 (38.2% Fib).

On the downside 200-DMA at 0.7254 is major support, break below invalidates bullish bias, exposes downside to 0.7148 levels.

Good to buy dips around 0.7320, SL: 0.7250, TP: 0.7368/ 0.74/0.7450

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