It’s been some time since I commented on the AUDUSD.
However that doesn’t imply I haven’t been watching it.
I observe the entire main forex pairs, and I’m particularly involved in them now given the rise in volatility.
I definitely don’t need to be caught in an illiquid cross when volatility strikes.
Look no additional than the current 1,000 pip each day swings from a cross just like the GBPAUD.
I’ve additionally been more interested in the NZDUSD than the AUDUSD.
In my view, the New Zealand greenback technicals are superior to the Australian greenback in each manner.
That doesn’t imply the AUDUSD isn’t favorable, although.
And very similar to its New Zealand counterpart, the AUDUSD is retracing its footsteps following the March selloff.
That’s a superb factor for many who share a bearish outlook.
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If you happen to ask me, the one actual play right here is to promote energy.
Might the AUDUSD climb increased from present ranges?
In fact, however the reward isn’t well worth the danger.
If you happen to search uneven returns as I do, then the solely possibility is to play this as a correction throughout the broader downtrend.
With that in thoughts, right here’s what I’m watching:
Final Wednesday’s session bought off exhausting from the 0.6450 space, which now turns into the “hinge” for increased or decrease costs.
If the AUDUSD recovers 0.6450 on a each day closing foundation, we might see costs push increased into 0.6670.
However, sub 0.6450 costs depart the AUDUSD weak the place an in depth beneath rising wedge help close to 0.6330 would entice sellers.
A break decrease would expose 0.6200, adopted by 0.6000 and 0.5730.
All the time assume consolidation will last more than you count on.
That can assist hold your preliminary place sizes in verify, and likewise hold you sane when a market stays buoyant longer than they most likely ought to.
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