ridethepig | AUD Market Commentary 2020.04.08

After sweeping the highs, which was not so difficult with its positional issues, this leg should appear all too easy. Well this may lead you to ask some important questions around how a pinned high can be called into question so confidently, because it is possible to build one' whole swing around resistance/support, but around a pinned high? This requires an advanced understanding of liquidity. Of course, sweeps normally occur in the ebb and flow of risk and strategic positioning, perhaps when we are pursuing a fleeing price driver.

On the other side, a well planned architect can be the basis which influences the way we construct the whole predicted flow of capital. Here it must be pointed out that the highs will not last forever, a pivot which only crops up occasionally, in fact even the threat of such important at 0.620x barrier can force our opponent into capitulation and thus its effect carries significant importance.


So, the following swing merits our special interest in AUDUSD as long as AUDCNH remains under pressure. It is about a sweep which suddenly appeared, then just as suddenly disappeared. Some hours from now, the move will be clear. Instead of the fleeting adventure forward with investors thinking everything is roses and we are back to normal, the G10 FX board will be dominated by a lasting positional advantage to risk-off. Until things have settled down and peace reigns, the USD will remain king.

Thanks as usual for keeping the support coming with likes, comments, charts and etc!