Forex Technical Analysis: AUDUSD looking to break on China data
Forex Technical Analysis: AUDUSD looking to break on China data (October 21, 2014)
The AUDUSD is setting up for a move off of the China economic data to be released at 10 PM ET/2 AM GMT. At that time, Industrial Production, Retail Sales for September will be announced. However, the most important release will be the GDP for the 3Q.
The estimate is for a Q/Y % GDP to show a gain of 7.2% vs 2Q 7.5%.
If the number comes out weaker than expected the AUDUSD should break to the downside and may look toward ultimately making new lows for the year (through 0.8643). If the data is better than expectations, the non trending aspect of the market should solicit a break out higher, with a move ultimately above the recent high (i.e., above 0.8900).
Often times, non-trending transitions to trending and the AUDUSD has been non-trending. With key data providing a potential catalyst for a move, traders can think in terms of anticipating a trend, and going with the momentum move on a break.
Greg Michalowski, Director of Technical Analysis and Client Trading Education for www.forexlive.com outlines the technical levels that should provide the roadmap for a trend move. Trader can use the levels to define and limit risk, and also to help define the steps in a trend-like move.
The Forex Market is volatile. Technical Analysis helps to define and limit risk for traders.
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