AUD/USD opens on a bearish gap indicating a false bullish breakout

Australia - New car sales

Today, at 01:30 am GMT, the Australian Bureau of Statistics released new car sales data, which measures changes in the number of cars sold in the domestic market over the past month.

Since many people tend to buy cars more when they feel confident about financial conditions, binary options traders consider the number of new car sales to be a leading indicator of consumer confidence in Australia.

Last month, the new number of vehicle sales rose by 0.0% and this month it has increased by 2.2%.

United States - Building Permits

Tomorrow, at 12:30 pm, the US Census Bureau will release the Building Permits Number, which is the annual number of new building permits for the residential real estate sector issued over the past month.

Since obtaining a building permit usually indicates future construction work, binary options investors regard this data as a leading indicator of the overall economic activity in the country. Last month, about 1.18 million building permits were issued, and this month, analysts expect the number to come in at around 1.20 million.

Trading recommendations for the Australian dollar / US dollar currency pair

AUDUSD-18 april

After making several attempts, the price of the AUD/USD currency pair closed last week above the important resistance around 0.7675. However, earlier today, the AUD/USD price opened the week with a large gap, below this pivot zone.

The gap indicates that the break above 0.7675 turned out to be a false breakout.

As the US Building Permits number is expected to rise this month, the fundamentals of the AUD/USD also point to a bearish outlook for this pair this week. However, if the AUD/USD price moves higher and again closes above 0.7675 in the next couple of days, it will certainly act as confirmation that this pair is likely to continue in the upward trend. Under these circumstances, it would be advisable for all binary options traders to consider placing a sell order for the AUD/USD currency pair at the current market rate, as long as the price does not close above 0.7675.

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Ahmed A.
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