AUD/USD Price Penetration below Last Week’s Low May Indicate Continuation of the Downtrend

United States – Final GDP

On Tuesday, at GMT 1:30 p.m., the US Bureau of Economic Analysis will release the quarter-over-quarter final GDP, which measures the annualized changes n he value of all goods and services produced by the US economy over the last quarter.

Binary options traders consider the final GDP to be an important fundamental indicator of the US economy because it indicates how the overall economic activity measured up compared to the previous quarter.

Last quarter, the US final GDP increased by 2.1% and the forecast for this quarter is currently set at 1.9%.

Australia – CB Leading Index

On Wednesday, at GMT 11:00 p.m., the Conference Board Inc will release the month-over-month leading index for Australia, which measures the changes in the level of a composite index based seven other major fundamental indicators.

Since the CB leading index aggregates some of the other indicator data, binary options investors consider this to be an important representation of the overall Australian economy. However, since most of these data are previously released, the CB leading index tends to have a minimized immediate market impact.

In November, the CB leading index declined by 0.1% and it seems to be the prevailing trend for the last few months. If the index declines once again this month, it may have a bearish impact on the valuation of the Australian Dollar against other major currencies.

Trade Recommendation for the AUD/USD

AUDUSDDaily

After penetrating and breaking below the uptrend line on December 8, the AUD/USD price started a retracement move immediately. However, the AUD/USD resumed the downtrend on December 11 and penetrated below the important support level around 0.7150 last week.

But, the AUD/USD once again found strong support around the 0.7100 level and so far the price remained within the December 17 high low range, which effectively formed an inside bar.

Although the US final GDP (q/q) is expected to come worse than last quarter, the recent interest hike by the Federal Reserve would likely help continue to bearish trend till the upcoming holidays are over.

Under the present circumstances, it would be recommended that traders consider placing a PUT order for the AUD/USD with their binary options brokers, once the price closes below last week’s low, which is at 0.7095.

Recommended Broker: Porter Finance

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