Five problems for falling US indices: Better news coming? AUD CPI in focus [Video]

Brad Alexander FX Large Limited

We just saw the RBA raise interest rates as expected but AUD is still looking weak.

This is less a factor of AUD and more a factor of USD with strength and very high bond yields.

In today’s Market Outlook, let’s take a look at Forex trading on Gold, XAUUSD, the NASDAQ, WTI Crude Oil, USDCAD, AUDJPY, AUDCAD, and AUDUSD.

From the technical side, we see an oversold stochastic oscillator on the daily chart but after a 3-week long bear run.

If we move out to the 4-hour chart we see consolidation into a descending triangle but keep in mind that we have Australian CPI.

In AUDJPY we have a clear downward trend so watch for a pullback.

AUDCAD is back in it’s range trade mood so we will follow our technical indicators and, of course, news on the US/Canada trade dispute.

As we can see, CAD is very weak against USD so we need to see some very good news about trade agreements for this to change.

Even though crude oil is now flowing through Saudi pipelines, the market is not confident as peace talks between the US and Iran are going very badly.

So, no short trades on WTI or Brent just yet.

The news out of Iran, US/Canada trade, inflation, and the Fed looking at raising interest rates has weighed on all the US indices.

Also, the confusion over the safety and profitability of AI has not helped the NASDAQ or the S&P500.

Again, any good news in any or all of these areas will be positive for the indices…but not yet.

The strong USD is still weighing on Gold but are we seeing signs of a technical reversal?

A trend following strategy would include a retracement back to the upper trend line and to follow XAUUSD short.

That assumes no dramatic news on USD or geopolitical issues affecting gold.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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