AUDUSD pair is trading at highest level of decade and this is due to the data that was released today morning. We have seen the inflation in Australian economy was reported higher than expected, so this inflation may result in further interest rate hike. That is why we have seen this bounce, also the weak USD can be held responsible for the surge in the AUD price. So traders will be looking for the carry trade opportunities as the interest rates are still high in Australian economy than in United states. So for intraday trading we will be looking for buying opportunities in this pair as long as this pair remains above 1.0995 level. Slow stochastic suggest us our entries are valid and is in favor of the trade on 4 hour chart. From current level we see the pair to follow its trend and strengthen further to move towards its next resistance level which at 1.1075 level currently, so trading in the direction of the trend we recommend to trade long on AUDUSD pair.
Our recommendation on AUDUSD : AUDUSD technical analysis for 27 July 2011, we advice to take buy positions in AUDUSD above 1.0995 for target of 1.1075 and 1.1115 also place protective stop loss below 1.0975.
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sir, i am short on AUDUSD at 1.0960, what to do? please reply.
Balaji, Exit your short position and never trade against trend, as trend will be your friend. Book loss and enter the long position as suggested in above article.