Bottom line: AUDUSD long term structure continues to be bullish against 0.5505 lows in March 2020. In the short term though, bears might be inclined to push lower towards 0.6530 levels at least. Intermediary resistance is seen towards 0.7060 mark.
Fundamental Outlook:
Dow Jones futures managed to rally towards 26400 mark during early hours yesterday. This was quickly revered and the indices closed lower by -1.43% at 25864. SPX500 also followed suit, and managed to close -1.04% lower, at 3146. NASDAQ hit yet another high at 10700 before closing lower.
Indices in the US continue to diverge, and this could be a potential warning. Further with steady rise of COVID-19 in the United States, risk assets have also surprisingly rallied. These might be early signs of a potential risk aversion ahead. Investors should remain mindful.
AUDUSD had come under pressure after hitting highs at 0.6997 yesterday. The Reserve Bank of Australia kept interest rate unchanged at 0.25%. Low interest regime may stay for a while, it was hinted. On the other hand, state of Victoria plans a lock down as COVID-19 infections rise.
Technical Analysis:
AUDUSD might be preparing to drop lower towards 0.6530 level in the short term. After printing highs at 0.7060 earlier, bulls might be wanting to take a break as the currency produces a corrective drop. We expect the rally to resume from 0.6500 levels, going further.
AUDUSD has remained in control of bulls since 0.5505 lows, and managed to carve a series of higher highs and higher lows towards until hitting 0.7060 mark. Also note that a meaningful resistance was taken out around 0.7032.
AUDUSD is expected to ideally produce a corrective drop, before resuming its rally. The fibonacci 0.382 retracement is seen around 0.6530 and might produce a bullish bounce. Please note that probability remains for a continued drop through 0.6200 levels, the fibonacci 0.618 retracement of earlier rally.
Most traders might consider to remain flat for now, allowing AUDUSD to produce a corrective drop towards 0.6500 and 0.6200 mark. Aggressive traders might initiate short positions with risk above 0.7060 and potential target towards 0.6500 at least.
Prepared by
Harsh Japee, Technical Analyst.
AUDUSD Chart
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
