Mustafa Hindawi writes: Looking at Australian Dollar price action during Q1 this year, we can see how it managed to earn against other currencies.

Recent Data releases showed that the Australian economy grew by 1.1 per cent in the first quarter from the fourth quarter and was up 3.5 per cent from the same quarter a year ago. Exports drove the surge.

The price of iron ore and coal, which combined make up 30 % of Australia’s exports, have fallen in 2014, while the Australian dollar has risen.

Reserve Bank of Australia Governor Glenn Stevens will speak in San Francisco next week, with markets looking to see how he views recent falls in commodity prices against the strength of Australian dollar.

Looking at this last week COMMITMENT OF TRADERS released by CFTC on Friday, June 6, 2014, we find that AUD maintains an increasing bullish Sentiment.

Back to charts, AUD price action is becoming interesting as it enters the state of make or break against other currencies.

Governor Glenn Stevens speech next week shall be key as well as Data releases from China, Australian metals no.1 importer.

When chart speaks, open your eyes to receive and your mind to understand.

EURAUD

Last week the Australian dollar has jumped after the European Central Bank lowered one of its key interest rates into negative territory for the first time.

As seen at chart below , the pair has crossed below the median line of Andrews pitchfork yet stuck in a narrow range which should been exited soon enough .

The MACD indicator is at zero level.

Medium term trend remains bearish and 1.4047 (Nov. 3, 2013 low) is the next target of the bearish head and shoulder pattern.

AUDCHF

This pair in particular responds to Andrews pitchfork and its components which gives us an edge to take such a high probability trade.

We can see a bullish board head and shoulder pattern.

MACD indicator is above zero levels and tends to confirm our view.

Medium term bias remains bullish and 0.8700 (October 2013 peak is the final target.

AUDNZD

Here is a good pair that we can consider to benefit from AUD potential strength.

The pair broke above 1.0900 resistance zone and bulled back to test it. There is good room for price till next resistance zone at 1.1200.

MACD indicator is above zero line.

Medium term bias is bullish and next resistance is the target zone.

This is another good trade to consider.

To sum it all up, AUD has reached new levels that provide good trades that shall lead to more gains once considered.

Bio:

I have studied technical analysis and forex market for four years now.

A great deal of my trading career to devoted to applying the teachings of Dr. Alan Andrews to Forex market and cleaning the messy charts for traders to see the levels where profit is more guaranteed.

For questions or suggestions, please contact: mzeus2014@gmail.com

Copyright © 2014 Mustafa Hindawi - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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