Daily Trading Signal
* AUD/USD currency pair experiences a 1.50% loss due to weaker-than-expected CPI figures, slipping from 6.8% to 6.3%.
* The four-hourly time frame reveals a bearish bias, suggesting potential for short-selling positions under the 0.6618 level.
* Investors should consider placing a stop-loss around the 0.6645 or 0.6680 level, with potential support at the 0.6578 level for a slight upside correction.
During the early Asian session, the AUD/USD currency pair lost over 1.50% or 98 pips so far due to weaker-than-expected CPI figures. The Australian Consumer Price Index has slipped from 6.8% previously to 6.3%, which can indicate that the economy is not performing well.
The good thing about this is that with LonghornFX, you can go for short selling. As you can see in the four-hourly time frame, the AUD/USD currency pair has violated an upward trendline around the 0.6645 level. The formation of bearish engulfing and three black crows patterns in the four-hourly time frame suggests that the bearish bias is not over yet.
The idea is to look for a sell position under the 0.6618 level. On the lower side, the Aussie has chances to go down to the 0.6578 level, and if it manages to gain support and hold above this level, we can expect a slight correction on the upside. Otherwise, investors can look for placing a stop-loss around the 0.6645 or 0.6680 level.
AUD/USD - Trade Idea
Entry Price – Sell Below 0.66190
Stop Loss – 0.66449
Take Profit – 0.65771
Risk to Reward – 1 : 1.6
Profit & Loss Per Standard Lot = +$419/ -$259
Profit & Loss Per Micro Lot = +$41/ -$25
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