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【XM Decision Analysis】--AUD/USD Forex Signal: Bullish Engulfing Candlestick Forms
Risk Warning:
The purpose of information release is to warn investors of risks and does not constitute any investment advice. The relevant data and information are from third parties and are for reference only. Investors are requested to verify before use and assume all risks.
Hello everyone, today XM Forex will bring you "【XM Decision Analysis】--AUD/USD Forex Signal: Bullish Engulfing Candlestick Forms". I hope it will be helpful to you! The original content is as follows:
Bullish view
- Buy the AUD/USD pair and set a take-profit at 0.6275.
- Add a stop-loss at 0.6000.
- Timeline: 1-3 days.
Bearish view
- Sell the AUD/USD pair and set a take-profit at 0.6000.
- Add a stop-loss at 0.6275.
The AUD/USD exchange rate rose by over 3% as investors embraced a risk-on sentiment as trade tensions eased. After bottoming at 0.5910 on Wednesday, the pair surged to 0.6175 as the US dollar index pulled back. It remains about 4.20% below its highest point this year.
Risk-on sentiment
The Australian dollar rebounded as market participants a risk-on sentiment after Donald Trump paused his Liberation Day tariffs on over 70 countries. This announcement led to a big drop in the US dhttps://xmaccount.comollar and a significant increase in stocks.
Analysts believe that Trump will still pause tariffs on Chinese goods, which he hiked to 125% after China retaliated on his tariffs.
The Dow Jones jumped by over 3000 points, while the Nasdaq 100 and S&P 500 jumped by 500 and 2,000, respectively. It was their best day in years. This trend continued in Australia where the ASX 200 soared by over 5%. The VIX index, which is often seen as the fear gauge in Wall Street, tumbled by over 40%.
The AUD/USD jumped as investors anticipated that the Federal Reserve will start cutting interest rates as inflation continues falling and as odds of a stagflation ends. Economists expect the upcoming data to show that the headline consumer price index (CPI) dropped from 2.8% in February to 2.6% in March.
Core inflation, which excludes the volatile food and energy products, is expected to move from 3.1% to 3.0%. Inflation will likely continue falling now that energy prices are falling. Brent and West Texas Intermediate (WTI) have dropped to $65 and $62, respectively.
AUD/USD technical analysis
The AUD/USD pair bottomed at 0.5910 this week and then bounced back to a high of 0.6175. It moved slightly above the key resistance point at 0.6085, its lowest swing on February 3rd. It also formed a bullish engulfing pattern, which is characterized by a large bullish candle that fully engulfs a small bearish candle.
The pair has moved below the 50-day moving average, meaning that bears are still in control for now. Therefore, the pair will likely continue rising as bulls target the Woodie pivot point at 0.6275. A drop below the support at 0.6085 will invalidate the bullish outlook.
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