AUDUSD Remains Buy On Dips

Key Highlights

• Aussie dollar was one of the best performing currencies as it traded higher against most major currencies, and looks set for more gains in the short term.

• New Zealand Building Permits i.e. the number of permits for new construction projects released by the Statistics New Zealand posted a rise of 11% in March 2015, compared to the last decline of 6.3%.

• UK GFK Group Consumer Confidence i.e. a leading index that measures the level of consumer confidence in economic activity registered a reading of 4 in April 2015, compared to the forecast of 4.

• Japanese Industrial Production pointing outputs of the Japanese factories and mines plus followed as a major indicator of strength in the manufacturing sector released by the Ministry of Economy, Trade and Industry posted a decrease of 0.3% in March 2015, compared to the forecast of a 2.3% decrease.

• Considering the yearly change, the Japanese Industrial Production registered a reading of 1.2% in March 2015, compared to the same month a year ago and the last one was a 2% decline.

• Later, the Japanese official monetary policy statement will be released by the Policy Board of the Bank of Japan, which might cause swing moves in the Yen pairs.

AUDUSD

As mentioned, the Aussie Dollar surged higher against the US Dollar, as it traded above the 0.8000 resistance area. Moreover, there was a bearish trend line formed on the daily chart of the AUDUSD pair, which was cleared by buyers. It looks like the pair might continue trading higher in the near term, and if it corrects lower from the current levels, then the broken trend line might act as a support to the pair. Furthermore, the 23.6% fib retracement level of the last leg from the 0.7532 low to 0.8071 high is also sitting below the highlighted trend line.

Intraday Support Level – 0.7980

Intraday Resistance Level – 0.8080

• Overall, as long as the pair is above the 23.6% fib level it might continue moving higher.

• A break below the same could ignite more losses in the short term.

On the upside, a break above the 0.8120 might take AUDUSD towards the 0.8200 resistance area.

GOLD

GOLD looks like slowly grinding higher, and might continue to trade higher in the near term. There was a monster bearish trend line formed on the daily chart of GOLD, which was breached recently. The same trend line later acted as a support on a number of occasions. It is currently trading around an important resistance around the 200 and 100-day SMA’s. However, GOLD managed to clear the 38.2% fib retracement level of the last drop from the $1307 high to $1142 low. So, a break above the 200-day SMA might call for more gains.

Intraday Support Level – $1200

Intraday Resistance Level – $1212

• Buying with a break above the 200-day SMA looks like a good option.

• A failure might call for losses in the short term.

If GOLD buyers fail to take it higher, then a correction towards $1180 is possible.  

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