Chinese GDP Release Lifted Aussie Dollar Buying Sentiment
- US dollar continues to consolidate against most major pairs as the Forex market eyeing for the next move in the near term.
- Chinese GDP data was released earlier, which came better than expected and registered a growth rate of 7.3%, compared with the expectation of 7.2% in the third quarter of 2014.
- Aussie dollar breaks higher against the US dollar after the Chinese data release.
- British pound turned out to be one of the best performers recently, which is an important bullish sign in the short term.
- EURUSD looks set for a break if the Euro buyers manage to gain strength.
The Euro was seen slowly crawling higher against the US dollar during the past couple of sessions. However, the upside was limited as there is an important bearish trend line on the hourly chart, which is containing the Euro buyers. However, the pair is trading in the positive territory above the 100 and 200 hourly moving averages. There is a chance that the pair might move lower one more time towards the 100 hourly moving average, which might act as a support for the EURUSD pair. We need to see how the pair reacts around the same and if the Euro buyers successfully manage to defend it, then we can witness a sharp upside reaction moving ahead.
Intraday Support Level – 1.2760
Intraday Resistance Level – 1.2810
- Overall, as long as the pair stays above 100 MA it might climb higher.
- Buyers need to clear the highlighted bearish trend line for more strength in the short term.
Alternatively, if the EURUSD pair breaks the mentioned support area, then the next level of interest would be around the 200 hourly moving average.
As mentioned earlier, the Aussie dollar is trading higher after the Chinese GDP data came better than expected. It is not only trading higher against the US dollar, but also against the New Zealand dollar. There was a critical bearish trend line connecting swing highs on the hourly chart of the AUDNZD pair. After the release, the pair traded higher and broke the mentioned trend line, but it looks like the pair is struggling to break the 100 hourly moving average. The 38.2% fib retracement level of the last fall from the 1.1138 high to 1.0971 low is also sitting around the same levels. So, it would be interesting to see how the pair reacts in the short term. The hourly RSI is making an attempt to settle above the 50 level which is a positive sign.
Intraday Support Level – 1.1018
Intraday Resistance Level – 1.1038
- Buying dips around the broken resistance area might be a good option.
- 100 MA might continue to act as a resistance for the AUDNZD pair.
If the pair moves lower, then the broken trend line might act as a support. If the Aussie buyers fail to manage the strength above 100 MA, then the pair might head back towards the last low of 1.0971 in the short term.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
Taking into account today’s volatile economy GTCM endeavors to provide its clients with a secure trading environment and strong financial services. We aim to establish a strong relationship with our customers by providing them with ease, transparency and accountability on all their account activities
Banc De Binary is home to the 21st century investor. Founded in the wake of the 2008 financial crisis, we set out to provide the simplest, most profitable trading solutions, and have built a following among customers in over 80 countries worldwide. Today, we provide access to the financial markets via our online binary options platform to 250,000 account holders. As a World Finance listed company and multi award-winning firm, we are proud to be able to guarantee a safe and risk-controlled environment for all our valued clients.
HY Markets is a market leader in providing retail and institutional investors with access to foreign exchange and other capital markets. With HY Markets you can trade forex, metals such as gold and silver, energy products such as US oil and natural gas, commodities, indices as well as stocks, all from a single integrated account.
Ikon Markets are an online trading service provider affiliated to the Ikon Group, an acclaimed global network for online financial trading. Prior to the introduction of our online segment. We, at Ikon, have had many years of experience in providing financial trading services to institutional investors, such as banks, large financial institutions and mutual fund companies.