AUD is highest interest yielding free float currency available today, this is one of the successful carry trade to hold the AUD with a low yield currency such as USD, JPY or CHF. Intraday trading analysis (tips) for AUD/USD 4 July 2011, we recommend, Enter buy AUDUSD above 1.0705 for target of 1.0755 and 1.0785 also place protective stop loss below 1.0685.
Reason to trade AUDUSD long: The AUDUSD pair is always the first choice for the carry trade as the interest rates are very high in Australian economy. For long term we are always looking for buying opportunity in this pair as long it stays above 1.00 level. So for intraday trading we will be looking for buying opportunities in this pair as long as this pair remains below 1.0685 level. RSI suggest the bulls are active and is in favor of the trade on 4 hour chart, trade cautiously with tight stop loss. From current level we see the pair to strengthen further and move towards its next resistance level which currently lies at 1.0785, so trading in the direction of the trend we recommend to trade long on AUDUSD pair.