Intraday trading analysis (tips) for AUD/USD 4 May 2011, we recommend, Enter long in AUD/USD above 1.0845 for target of 1.0885 and 1.0915 also place protective stop loss below 1.0825.
Reason to trade long: AUD was on uptrend and we see a buying opportunity on AUS. AUD/USD pair has been making the series of higher high and lower low suggesting the strong trending market. Also making new high to break past 28 year high. RSI support the up move and is in favor of the trade on 4 hour chart, however RSI is loosing the strength, so trade cautiously with tight stop loss. So we see the pair to strengthen further and move towards its next resistance level which is at 1.0915, so trading in the direction of the trend we recommend to trade long on this pair. Also the interest rate difference in this currency pair attracts the buyers in Australian dollar for carry trade opportunity.