The Dallas FED Speaks-Live Signal For The AUD/USD
Shain Vernier • 1 min read
Today’s session has certainly been an interesting one. The U.S. New Home Sales data gave the markets a lift, as well as improving the outlook for a tightening policy facing the USD. Since then we have seen a lower than expected release from the Dallas FED hit the wires, coming in at 19.4 well below the projected 24.0.
It is important to pay attention to statistics from FED participants. Today’s Dallas FED metric lends credence to last week’s dovish sentiment from the FOMC minutes. Ultimately, we will see if big players are going to become involved in upcoming U.S. T-bill auctions.
Currently, there is an open short signal facing the AUD/USD that is in a position to perform well. Amid the bolstered participation from this morning’s economic calendar, the AUD/USD is relatively active.
AUD/USD, Daily Chart
As of this writing, the Aussie is trading beneath heavy resistance and above moderate support. These levels are subject to tighten as the week wears on, but for now, they confirm the open signal.
Here are a few of the key technicals:
Resistance(1): 20 Day EMA, .7638
Resistance(2): Bollinger MP, .7653
Resistance(3): Daily SMA, .7661
Support(1): 38% current wave, .7607
Support(2): Swing low, .7531
Support(3): Macro 50% yearly retracement, .7475
The active short signal is a continuation play for the intermediate-term downtrend we have seen in the AUD/USD. With only a moderate support level being in the vicinity of price, this trade is very much alive.
If you are currently involved with this signal be sure to check in regularly for any developments. In the event that the market dynamic shifts, my colleagues Rowan, Arslan, Skerdian or myself will be ready to break down all of the action.