20 Jan 2015
AUD/USD: Accumulation between 0.8150-0.8250, China GDP eyed
FXStreet (Bali) - AUD/USD has entered a period of accumulation of orders on both sides of the market, with the 0.8250-0.8150 the range covering most eventualities short term, including the potential reaction to China's GDP figures, barring any major deviation.
Nomura Economists provide their views on the upcoming Chinese data release, noting: "We maintain our GDP growth forecast of 7.3% y-o-y in Q4 2014, before slowing to 7.1% in Q1 2015, weighed down by tighter controls over local government financing, the property market correction and other structural issues."
Order flow wise, expect the 0.8250 level to act as an important area of resistance, with stop loss buy orders accumulating overhead, as the area has been protected in several occasions, including Jan 16 Asian high, and two subsequent approaches during Jan 16 US high and Jan 19 Asian test. On the downside, meanwhile, the main area of interest should be found, first circa 0.8275, as per accumulation of stop losses following the Jan 16 US bounce, ahead of 0.8150/55, Jan 15 low.
Nomura Economists provide their views on the upcoming Chinese data release, noting: "We maintain our GDP growth forecast of 7.3% y-o-y in Q4 2014, before slowing to 7.1% in Q1 2015, weighed down by tighter controls over local government financing, the property market correction and other structural issues."
Order flow wise, expect the 0.8250 level to act as an important area of resistance, with stop loss buy orders accumulating overhead, as the area has been protected in several occasions, including Jan 16 Asian high, and two subsequent approaches during Jan 16 US high and Jan 19 Asian test. On the downside, meanwhile, the main area of interest should be found, first circa 0.8275, as per accumulation of stop losses following the Jan 16 US bounce, ahead of 0.8150/55, Jan 15 low.