Technical Analysis to trade AUD/USD & BTC/USD for NADEX.com
- 1 Technical Analysis to trade AUD/USD & BTC/USD for NADEX.com
- 2 US Regulated Platform: NADEX
United States – Institute for Supply Management (ISM) Manufacturing PMI
On Monday, at GMT 2:00 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 60.8. The forecast for this month is set at 60.1.
Australia – Cash Rate
On Tuesday, at GMT 4:30 a.m., the Reserve Bank of Australia (RBA) released the official cash rate, which is the interest rate that major Australian banks and financial institutions pay to borrow funds held at the RBA.
Since short-term interest rates are the primary factor in the valuation of the Australian Dollar against other major currencies, binary options traders pay close attention to any changes in the official cash rate.
The RBA left the cash rate at 1.5% in their last meeting and the forecast for this month is that the RBA will leave the cash rate unchanged at 1.5% for the time being.
Since breaking below the uptrend line on February 1, the AUD/USD went down around 375 pips. Over month, the pair mostly remained range bound and formed a downward equidistant channel in the process. Last week, it bounced from the lower end of the channel and formed a bullish pin bar. Currently, the AUD/USD is trading just above the resistance level near 0.7685.
The Reserve Bank of Australia may leave the cash rate unchanged at 1.5% this week. On the other hand, the ISM’s manufacturing PMI reading for the United States would likely come out above 60. It indicates strong momentum in the economy. However, given that the bullish pin bar formed near a key support, the bullish momentum might be too strong right now. We believe the AUD/USD will likely close above the resistance near 0.7685. If that happens, it would likely attract additional bullish momentum in the market.
Hence, US binary options traders should look out for trading opportunities above this major resistance level around 0.7685.
After breaking above the uptrend line in early February, the BTC/USD mostly remained range bound over the last two months. However, as an increasing number of top technology companies like Google, Facebook, and Twitter decided to ban crypto currency and ICO related advertisement from their platform, the BTC/USD turned bearish.
Last week, the BTC/AUD slipped below the 7,000 level, indicating additional weakness. Also, news broke that 5 cryptocurrency exchanges in Japan have withdrawn their applications with the Japanese Financial Services Agency (FSA). Hence, we believe the BTC/USD price is set for additional decline.
Hence, US bitcoin traders should look out for trading opportunities below this major support level around 7,000.
NADEX.com – a Top Platform for US Binary Options Traders to trade AUD/USD & BTC/USD
US Regulated Platform: NADEX
Nadex, company based in Chicago, is one of few US regulated binary options exchanges platform . Secure Trading with 24/7 Customer support. Read Nadex.com review.
- US CFTC-regulated Exchange
- Free Demo Account
- Free Education Courses
- US Based Platform
- Safety: Customer Funds in Segregated Accounts