AUD/USD – Technical Analysis for Binary Options Brokers
[banner-group name=”banner-analysis”]United States – Institute for Supply Management (ISM) Manufacturing PMI
Tomorrow, at GMT 4:00 p.m., the Institute for Supply Management will release its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.
Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, binary options investors can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.
Last month, the ISM manufacturing PMI for the United States came out at 53.2 and the forecast for this month is set at 53.7.
Australian Trade Balance
On Friday, at GMT 1:30 a.m., The Australian Bureau of Statistics will release the monthly Trade Balance figure, which measures the difference in value between all import and export, including physical goods and intangible services.
Since the demand for export is directly correlated with the demand for the Australian Dollar, binary options traders analyse the monthly trade balance in order to gauge the strength of the AUD against other major currencies.
Last month, the Australian trade balance figure came out at -1.54 billion and the forecast for this month is currently set a slightly better, but still negative, figure compared to last month, at -0.55 billion.
Trade Recommendation for the AUD/USD
Since breaking below the uptrend line on December 14, 2016, the AUD/USD price fell by around 250 pips over the last two weeks. However, last week, the AUD/USD started a retracement and broke above the intermediate downtrend line, but soon found resistance near the 0.7245 level.
As the US ISM manufacturing PMI reading would only likely to slightly increase from 53.2 to 53.7, but the Australian trade balance is likely to improve from -1.54 billion to -0.55 billion, we believe the fundamental outlook for the AUD/USD would likely remain bullish this week.
Hence, if the AUD/USD price penetrates and closes above the 0.7245 level, it would likely attract additional bullish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the AUD/USD with their binary options brokers as soon as the price closes above the 0.7245 level on the daily time frame.
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