AUDUSD Gains Ground with Soft USD
Updated
Finally, AUDUSD have started to regain its ground after most investors have swayed much stress over the retaliatory action s of China against the additional US trade tariff imposed by President Trump.
The same manner that US equities have continued its pace to record levels after a minor corrective move led by the triple digit climb of the #DOW above 26200. Meanwhile, this is also against a backdrop from US 10 year treasury yields that has posted above 3.00% in the US session. Paying close attention to the price movement & market behavior of the USD Index #DXY, Bond spread between US & Germany and the #EURO and #CABLE. As we draw closer towards the end of the third quarter and into the last quarter trading of the year.
The #AUDUSD price currently at 0.7230 is actually half way through its initial objective that still needs to build more momentum when it passes through above the 0.7280-0.7350. A clear objective of over 200 pips from its registered low at 0.7085. While the technical perspective which we presented from the previous overlay chart can now justify that the bullish Gartley price pattern once completed would provide the final confirmation for a bounce.
This maybe encouraging for swing traders, on the contrary the 2nd objective may still prove to be some distance ahead. Which could easily result similarly to a 'dead cat bounce' if prices would not be accompanied with substantial volumes that would drive it past the 2nd objective. For now the current price swing higher to these levels are good. Especially, when the Australian Dollar got some additional support from their previous strong job data.
The same manner that US equities have continued its pace to record levels after a minor corrective move led by the triple digit climb of the #DOW above 26200. Meanwhile, this is also against a backdrop from US 10 year treasury yields that has posted above 3.00% in the US session. Paying close attention to the price movement & market behavior of the USD Index #DXY, Bond spread between US & Germany and the #EURO and #CABLE. As we draw closer towards the end of the third quarter and into the last quarter trading of the year.
The #AUDUSD price currently at 0.7230 is actually half way through its initial objective that still needs to build more momentum when it passes through above the 0.7280-0.7350. A clear objective of over 200 pips from its registered low at 0.7085. While the technical perspective which we presented from the previous overlay chart can now justify that the bullish Gartley price pattern once completed would provide the final confirmation for a bounce.
This maybe encouraging for swing traders, on the contrary the 2nd objective may still prove to be some distance ahead. Which could easily result similarly to a 'dead cat bounce' if prices would not be accompanied with substantial volumes that would drive it past the 2nd objective. For now the current price swing higher to these levels are good. Especially, when the Australian Dollar got some additional support from their previous strong job data.
Note
With reference to where the AUSSIE Dollar came from 0.7180 and extension at 0.7085. Link: megatrade101.blogspot.com/2018/09/aussie-retraces-07180-finally-usd-takes.html
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