Weekly trade idea on AUD/USD: AUD strengthening expected
|Week: 26-30.10.2020
Key event: AUD. Consumer Price Index. CPI
The Consumer Price Index (CPI) is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive for the AUD, while a low reading is seen as negative.
We expect a positive reading.
By the expectation, we should see a strengthening in AUD against other currencies since the beginning of the week. On wednesday, releasing day, there will be a reaction in case of a surprise in data. In case of a positive surprise, there will be even more strengthening. In case of important negative release, we might see prices go back to previous support.<
Key Levels
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Resistance 0.7200, 0.7270.
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Support 0.7030.
Trend
Bullish.
Price is above 0.7032 support level and it should test 0.7200 resistance because of expected positive results in Australian PCI.
Call to Action/Trade Idea
Until Wednesday will be looking for buying opportunities in AUD with a first target between 0.7200 and 0.7270 resistance levels.
In case of a positive unexpected result regarding the data, we might see prices reach 0.7340.
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