Where Should $AUD Go, After The Surprise of GDP Rising

This is my point of view about $AUD/USD in the term of period between 09 – 18 June 2012.

well, it seems like the sun shines in the winter which is warming Australian economy. The GDP unbelievable rise more than 100% from the previous quarter and it is standing up on the Growth rate level 1.3 now. So, what  is the meaning of this bless of increasing the GDP level from Australia.  I think we have some opportunity to take profit in this event especially on the foreign exchange market.  lets we check the graphic of AUD/USD below.

Now, the price coming back on the position of  demand area (Long red Area) after had a weakness since 23 February 2012 and the question is why i think this will be the rebound momentum for AUD/USD. actually there are three reason i can say that to you.

1) the momentum is big enough
       this can be seen on the long body candle on the right side of the picture. This long body candle means that,          
    buyer is taking the position on this event, the price is pull back to its resistance on the up side red line. OK,      
    for a while, perhaps  we can see the price is just back and forth but it show us the buyer have a appetite to
    buy it and it have big possibility to go up. it just need some consolidation period to adapt in the new price
    level.

2) Supported by the big volume
        if the price is not supported by the big volume, it is nothing for me. to proof that the price action move is
     true, this component must be included on the research. from the chart above, the price is up and you can
     see, that the volume accompany the price and run in harmony. the price is up so that the volume.

3) The history repeat it self
        the announcement of Australian GDP in the September of 2011 can remain us, how about price action after
     the news was shown. gradually the price up isn’t it? so the probability of this rising GDP event, is same, it        
     will go up to the level of 1.048.

 responding this event, we still have to be watchful about the short term declining before it go up to our target level. i have said before that, i think it will consolidate or turn down first, so we have to search the opportunity trade in the dip not the rip. it will give us the clear view about this price action.

Position : BUY on Weakness

happy trading 

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