Our free forex signals service today looks at the AUD/USD pair and we have the entry, stop and take profits levels for you.
AUD/USD is trying to continue bouncing after breaking the 0.7450 support area as bears take a breather at the moment.
The Aussie continues to be plagued by mixed Australian employment data, which allayed China’s growth concerns. However, according to Fed Chairman Jerome Powell, the continued decline in the Dollar suggests that the Australian bulls are saving the day. In his biennial speech to Congress, Powell reiterated that the rise in inflation was temporary. His remarks overshadowed this week’s inflation data, which showed US producer prices were experiencing their highest annual growth in nearly 11 years, and consumer prices jumped to their highest level in more than 13 years in June.
The University of Michigan in the United States is expected to release consumer sentiment data tomorrow (July 16, 2021). On average, economists forecast Michigan Consumer Sentiment Index to hit 86.5 in July, up from 85.5 in the previous month.
Statistics on the consumer sentiment index reflect consumer confidence in the economic activity of the population. Since the Consumer Sentiment Index helps economists predict consumer behavior in the coming days, it is one of the key indicators in the US economy. In general, the high value of the consumer sentiment index strengthens the USD, which indicates a downward trend in the AUDUSD.
Overall, the AUD/USD pair swung in a tight range last week. A track-bound ditch is the formation of a rectangle classified as a bearish consolidation phase before the next phase. In addition, the technical picture supports the possibility of additional temporary losses.
Currently, market participants are awaiting economic events in the United States to view the release of standard reports for first-week unemployment and the Philadelphia Fed Manufacturing Index. This, together with US bond yields and the second day before the Powell Congress, will affect the US dollar exchange rate and create short-term trading opportunities around the AUD/USD pair.
AUD/USD free forex signal
Instrument: AUD/USD
Order: BUY STOP
Entry price: 0.7505
Stop Loss: 0.7425
TP1: 0.7589
Recommended Risk: 1%
Risk / Reward Ratio: 1:1
Signal validity period: Good until cancelled
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Saqib Iqbal
