Adding to mr. Glenn Stevens comments that the exchange rate in AUDUSD is too high we also noticed that commodities have been crashing along with losing confidence in Chinese economy.
FED could start with the tightening very soon. AUD is commodity driven and any sell off in commodities is positively correlated to AUD meaning that there is an increased risk of AUD selling off along.
Technically AUDUSD is trapped within the bearish Equidistant channel , slowly grinding to the downside which is always better then straight drop. That indicates that the trend is at place and traders are waiting for break of levels and momentum push to tank the pair lower. 0.7330 ( H3, DPP, previous swing ) could reject the price towards 0.7235 where we see X cross. X cross is important confluence point usually between the trend line, EMA and/or PP. This time X cross appears at 0.7235 ( L3/EQchannel lower TL) and H4 close and/or momentum break below targets 0.7150 and 0.7090.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.