AUD/USD Limit Buy at 0.9243*

*Update – AUD/USD Buy order was canceled.

The pair rebounded twice from entry, by 2 and 1 pips, and retraced over 20 points twice to first target. When this occurs entry orders should be canceled.

Limit Buy @ 0.9243 Targets: T1 0.9263 – T2 0.9370 Risk: 0.9190
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

The Aussie rose in Asia and Europe as stocks gained on renewed speculation the global economy will continue to expand.

Investors were also optimistic as the Australian central bank Deputy Governor Ric Battellino said, “the economy having only recently entered a new upswing, it is reasonable to assume that we will see this growth extended for a few more years yet.”

In addition, Aussie bulls should remain unconcerned if comments from Governor Battelino materialize.

“Over the next few years, Australia is also expected to see a further expansion of the resources sector, including the development of some very large gas projects. Mining investment, which is already at record levels as a share of GDP, could rise substantially further in the next five years or so,” Australian central bank Deputy Governor Ric Battellino said.

AUD/USD, found strong demand following the FOMC meeting minutes to extend gains to a 0.7304 high, for now.

The FED showed no concern over the weakness of the US Dollar and noted that declines have been “orderly” and appeared to reflect an unwinding of safe-haven demand.

The near term outlook has regained its bullish bias as risk appetite looks to remain supported, however, data in the U.S. session may impact near term moves. Preferred strategy looks to buy on dips with longer term targets in mind.

From current levels, 0.9287, the pair finds initial support at 0.9240, followed by 0.92115 and 0.9156.

Above current levels (0.9287), the pair finds initial resistance at 0.9304, followed by 0.9336 and 0.9371.

TREND

Near Term: Bullish
Medium Term: Bullish
Long Term: Bullish

Trading levels in play:

Limit Buy @ 0.9243 Targets: T1 0.9263 – T2 0.9370 Risk: 0.9190
* After 15 pips profit move stop to entry, take profit at will. Trade is canceled if it rebounds near entry and moves higher by 20 pips. Will follow up with comments if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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