GBPAUD Long CHINA DEVALUE CORRELATION
Updated
A trade I picked up tonight.
Fundamental:
-AUD to weaken from CNY weakness as they fail to make 880bln in loans
-economic performance expected to decline as outlined by Lowe
Technicals:
-strong rejection off end of daily range
-supports built at swing low, first candle (1st arrow)
Sentiment:
-AUD overextended but GBP also weak
-maybe if gold continues down AUD will follow
Price action:
-buyers from the initial rejection find value in the market and further purchase at support and a liquidity area (2nd arrow)
Fundamental:
-AUD to weaken from CNY weakness as they fail to make 880bln in loans
-economic performance expected to decline as outlined by Lowe
Technicals:
-strong rejection off end of daily range
-supports built at swing low, first candle (1st arrow)
Sentiment:
-AUD overextended but GBP also weak
-maybe if gold continues down AUD will follow
Price action:
-buyers from the initial rejection find value in the market and further purchase at support and a liquidity area (2nd arrow)
Trade closed manually
After rallying roughly 80 pips from my entry, price was rejected at 1.9600 and buyers taken out strongly.I was watching the ticks and 1.94512 had strong rejection but ultimately buyers lost and got taken back to the swing low.
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