#AUDUSD @ 0.66369 kicks off the new week on a positive note and climbs to a four-day high. (Pivot Orderbook analysis)
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- AUD/USD kicks off the new week on a positive note and climbs to a four-day high.
- A combination of factors could cap any further gains and warrants caution for bulls.
- Traders now look to the US ISM Manufacturing PMI ahead of the RBA on Tuesday.
The pair currently trades last at 0.66369.
The previous day high was 0.6642 while the previous day low was 0.6574. The daily 38.2% Fib levels comes at 0.66, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6616, expected to provide support.
The AUD/USD pair attracts some buyers on the first day of a new week and builds on Friday’s bounce from the 0.6575-0.6570 area, or its lowest level since March 10. Spot prices build on the steady intraday ascent through the early North American session and climb to a four-day high, closer to mid-0.6600s in the last hour.
Traders opt to lighten their bets ahead of this week’s key central bank event risks, which, in turn, is seen as a key factor pushing the AUD/USD pair amid relatively thin liquidity conditions on the back of a holiday in Europe. The Reserve Bank of Australia (RBA) is scheduled to announce its monetary policy decision on Tuesday. This will be followed by the outcome of the highly-anticipated two-day FOMC meeting on Wednesday.
The upside for the AUD/USD pair, however, seems limited amid a modest US Dollar (USD) strength, bolstered by the prospects for another 25 bps lift-off by the Federal Reserve (Fed). Apart from this, looming recession fears drive some haven flow towards the Greenback and act as a headwind for the risk-sensitive Aussie. Furthermore, weaker Chinese manufacturing data released on Sunday might contribute to capping the AUD/USD pair.
In fact, the official Chinese Manufacturing Purchasing Managers’ Index (PMI), released on Sunday, declined to 49.2 in April from 51.9 in March. The data comes amid worries about economic headwinds stemming from rising borrowing costs and tempers investors’ appetite for riskier assets, which is evident from the cautious mood around the equity markets. This warrants some caution before placing bullish bets around the AUD/USD pair.
Market participants now look to the release of the US ISM Manufacturing PMI, due later during the early North American session. This, along with the broader risk sentiment, should influence the USD price dynamics and contribute to producing short-term trading opportunities around the AUD/USD pair.
Technical Levels: Supports and Resistances
AUDUSD currently trading at 0.6639 at the time of writing. Pair opened at 0.6616 and is trading with a change of 0.35 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 0.6639 |
| 1 | Today Daily Change | 0.0023 |
| 2 | Today Daily Change % | 0.3500 |
| 3 | Today daily open | 0.6616 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.669, 50 SMA 0.6698, 100 SMA @ 0.6793 and 200 SMA @ 0.6737.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 0.6690 |
| 1 | Daily SMA50 | 0.6698 |
| 2 | Daily SMA100 | 0.6793 |
| 3 | Daily SMA200 | 0.6737 |
The previous day high was 0.6642 while the previous day low was 0.6574. The daily 38.2% Fib levels comes at 0.66, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6616, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 0.6579, 0.6542, 0.6511
- Pivot resistance is noted at 0.6648, 0.6679, 0.6716
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 0.6642 |
| Previous Daily Low | 0.6574 |
| Previous Weekly High | 0.6706 |
| Previous Weekly Low | 0.6574 |
| Previous Monthly High | 0.6806 |
| Previous Monthly Low | 0.6574 |
| Daily Fibonacci 38.2% | 0.6600 |
| Daily Fibonacci 61.8% | 0.6616 |
| Daily Pivot Point S1 | 0.6579 |
| Daily Pivot Point S2 | 0.6542 |
| Daily Pivot Point S3 | 0.6511 |
| Daily Pivot Point R1 | 0.6648 |
| Daily Pivot Point R2 | 0.6679 |
| Daily Pivot Point R3 | 0.6716 |
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