AUDUSD Technical Analysis on 4 Hour Chart – 12th May 2015
On the 4H. We see that we have an up trend. Price is consolidating within a triangle and we are seeing the pair bouncing off the bottom of that triangle and going beyond the down trend line that I have drawn.
The target to the upside is the top part of the triangle, around 0.7068, A break below the triangle can bring this pair down back to 1st support at around 0.7885 and 2nd support level at 0.78.
A break above the triangle can send this pair higher towards 0.805. Above that level and the bulls will come in with a greater force.
On the fundamental front, look out for the Chinese Industrial Production news release on Wednesday at 5:30 GMT.
It is a key manufacturing indicator and we will have respondents being interviewed for their views on China’s economy and business situation in China.
A good number will be positive for the AUDUSD. China is Australia’s number one trading partner and this number will have bearings on the pair. Traders should take note of this.
The numbers for this key release has been on the downside for the past 12 months,. March numbers is 5.6% and for April, we are expecting a figure of around 6.1%. A good figure like that can bring in the bulls for AUDUSD.
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