The Australian dollar initially tried to rally on Monday but continues to sink against the Singapore dollar. This is essentially a “risk off” trade, as the Singapore dollar is basically the “Swiss franc of Asia.” With that being the case, this shows that risk appetite is struggling, at least when it comes to all things Asian. That’s not a huge surprise, considering that the US/China trade war is starting to put up horrific economic figures in mainland China itself.
Now that we have broken through what could have been the bottom of a falling wedge, we now find ourselves below the 0.94 handle. That is a bearish sign, especially considering that the 61.8% Fibonacci retracement level is just above current trading as well. Now that we have broken through it, it’s very likely that we could wipe out the entirety of the move, or at least make a significant turn towards more bearishness.
At this point, it’s obvious that rallies will continue to be selling opportunities, as the 0.95 level should be thought of as a significant barrier, one that probably will be broken anytime soon. If we were to break above the 0.95 level, at that point the trend would change. However, at this point it looks very unlikely that rallies will offer anything but selling opportunities. The Australian dollar will continue to suffer as long as the US/China trade wars continue, and therefore this downward trend should continue. Money flows away from commodities and into fixed income and stability of banking services such as we see in Singapore. This trade continues to work, and therefore signs of exhaustion continue to be opportunities for entries into what has been extraordinarily reliable trend. At this point, there’s no sign of a rebound but if we see the US and China come to terms, this pair will shoot straight back up in the air.
Now that we have broken through what could have been the bottom of a falling wedge, we now find ourselves below the 0.94 handle. That is a bearish sign, especially considering that the 61.8% Fibonacci retracement level is just above current trading as well. Now that we have broken through it, it’s very likely that we could wipe out the entirety of the move, or at least make a significant turn towards more bearishness.
At this point, it’s obvious that rallies will continue to be selling opportunities, as the 0.95 level should be thought of as a significant barrier, one that probably will be broken anytime soon. If we were to break above the 0.95 level, at that point the trend would change. However, at this point it looks very unlikely that rallies will offer anything but selling opportunities. The Australian dollar will continue to suffer as long as the US/China trade wars continue, and therefore this downward trend should continue. Money flows away from commodities and into fixed income and stability of banking services such as we see in Singapore. This trade continues to work, and therefore signs of exhaustion continue to be opportunities for entries into what has been extraordinarily reliable trend. At this point, there’s no sign of a rebound but if we see the US and China come to terms, this pair will shoot straight back up in the air.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.