- Aussie rallied till 0.80093 after there was a positive reaction to Tuesday night’s federal budget.
- The government forecast that the budget deficit will narrow from 2.6% of GDP in 2014/15 to 0.4% of GDP in 2018/19.
- “The Australian dollar outperformed, which is possibly a result of the fears of a ratings downgrade post the budget being unfounded,” senior currency strategist NBA Emma Lawson said.
- Technically AUD/USD is facing resistance around 0.8025 and any break above will extend gains till 0.8074/0.8115.
- The pair is expected to find support at 0.792 and break below could take it to next level of 0.7850.
Indicator (1 Hours chart)
CCI (50) – Buy
CCI (14) – Sell
Ichimoku- neutral
It is good to buy at dips around 0.7950 for the target of 0.8025/0.8074 with stop around 0.7915.
The material has been provided by InstaForex Company – www.instaforex.com