Audusdsignal
AUDUSDThe Australian dollar initially rallied on Wednesday to reach near the 0.72 handle. By doing so, it shows a real chance of trying to recover. However, the market sold off almost immediately and has since looked very poor. By forming an inverted hammer, this suggests that the Aussie is still going to have a lot of overhead resistance. Because of this, I am not necessarily interested in trying to get overly aggressive to the upside, but I do recognize that rallies should continue to be faded.
Breaking below the bottom of the candlestick for the session on Wednesday opens up the possibility that we will go down to the 0.70 level, an area that has been important more than once, and an area that would attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. Because of this, I would anticipate that a lot of support should show up there, but whether or not it holds would be a completely different question. After all, the US dollar has been like a wrecking ball against almost everything in the world.
The Australian dollar is also highly sensitive to commodity markets, so you will have to keep an eye on them as well. That being said, the commodity markets have looked a little bit soft in general, so it does make sense that we may see negativity here. Although Australia has been outperforming most other economies, the reality is that there is still a lot of concern when it comes to global growth, so it does make a lot of sense that we would see the Aussie dollar reflect the uncertainty of the underlying economy. Furthermore, Australia is highly sensitive to China which has a whole host of problems at the moment.
Keep in mind with the coronavirus lockdowns that we see going on in China right now have locked down over half the economy, so it is not very likely that Australia will be a beneficiary of Asian demand for its commodities. Beyond that, we also have the Federal Reserve tightening monetary policy, which continues to drive the US dollar higher in general, which obviously has a significant effect on this market. At this point, I do not see a potential long set up.
AUDUSD DAILY, BREAK BELOW 0.7314 TURNED TO BEARISHAUDUSD broke below 0.7314 and hit 0.7165 target.
As I said in previous outlook, "But, Break below 0.7314 would potentially target 0.7165"
While below 0.7458 still bearish.
Break below 0.7134 potentially target 0.7086 & 0.6987.
Break above 0.7458 would open the way to retest 0.7555, 0.7616 & 0.7662.
AUDUSD | FOUND SUPPORT AUDUSD after breaking from falling wedge has completed our downside targets (Check last update on AUDUSD).
Currently price has reached to the minor support area which has been reactive in the past. We are watchful and may try to take some profit from the rise here.
Trade your levels accordingly.
AUD/USD LIKELY to go UP!HEy tradomaniacs,
AUD/USD is at an important key-level and likely to retrace as market-depth showing absorption by buyers at the bottom of todays opening-range.
Price is oversold, so it is likely to see profit-takes and so a retracement to the upside! Orderflow looks bullish for now!
What do you think?