Don't Long AUD/USD at this moment
Updated
Potential drop target: 0.714 or worse
3 parallel channels indicate the support is reached. However, from the past 2 drops, it is possible that support lines can't hold for a while.
If today or tomorrow AUD can't rebound/touch 0.72033 once, potential drop target will be extended to 0.712 or worse (0.709, previous strong support line)
It is very obvious that the momentum of buying AUD is getting lower and lower.
Looking at past 2 days, 0.718 up to 0.727, very low trading volume is shown when it is going up.
Opposite side (shorting/ sell AUD) are very strong with relatively high trading volume.
If no rebound today or tomorrow, it means short side doesn't want to close their short yet (meaning: not reaching their target zone)
November 2020 is US election month.
What you should expect is DXY going up before the election. US - China relation must be getting worse. AUD will be affected in this cross-fire (or direct hit)
Looking Gold price is much more accurate than looking DXY to detect the movement of AUD/USD.
If you cannot decide any directions, Best choice is DO NOTHING in coming 2 months
Or you can reduce your amount on playing this game.
Storm is coming and get ready to hide in cover!
3 parallel channels indicate the support is reached. However, from the past 2 drops, it is possible that support lines can't hold for a while.
If today or tomorrow AUD can't rebound/touch 0.72033 once, potential drop target will be extended to 0.712 or worse (0.709, previous strong support line)
It is very obvious that the momentum of buying AUD is getting lower and lower.
Looking at past 2 days, 0.718 up to 0.727, very low trading volume is shown when it is going up.
Opposite side (shorting/ sell AUD) are very strong with relatively high trading volume.
If no rebound today or tomorrow, it means short side doesn't want to close their short yet (meaning: not reaching their target zone)
November 2020 is US election month.
What you should expect is DXY going up before the election. US - China relation must be getting worse. AUD will be affected in this cross-fire (or direct hit)
Looking Gold price is much more accurate than looking DXY to detect the movement of AUD/USD.
If you cannot decide any directions, Best choice is DO NOTHING in coming 2 months
Or you can reduce your amount on playing this game.
Storm is coming and get ready to hide in cover!
Note
Forget to mention about where is the 3 parallel channel coming from.Pink one: 1st wave of up trend started in April 2020, broken on 1st June
Blue one: 2nd wave of up trend started on 15 Jun, broken on 21 Jul
Green one: 3 wave of up trend started on 3 Aug
The slopes you can see is coming flatten. It means losing power/momentum to move upward.
In fundamental analysis, yes. Upward force is coming from US QE.
In contrast, Aus gov printed less money than US.
Actually, US stop printing money in early July. And Aus gov printed again in early Aug (relatively small, few amount at this moment.)
Once again, without any more bad news in US, then AUD/USD party is over.
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