Sforex
Short

Idea for A/U next week.

FX:AUDUSD   Australian Dollar/U.S. Dollar
397 1 2
Fundamental Analysis:
- The focus next week is FOMC Minutes on Wednesday. This is the last Minutes of the year before Xmas             holiday, and decisions of FED will orient the greenback move next month.

Last week, we saw a sell-off AUD , A/U lost 0.9000 benchmark. This is a key support, if this support is broken, A/U will lower. RBA told that they felt uncomfortable with high currency, they will intervene to weaken AUD, and the level they want is 085. Please refer: http://www.fxstreet.com/news/forex-news/article.aspx?storyid=76956d4e-3756-45c5-9690-f5dc0a9d334c#
This is fair-value which RBA want. Thus, in the long term, the trend of AUD is bearish .

Come back FOMC Minutes:
I have two choices on the table now:
- 1 FED taper
-2 FED no taper

I consider each choice and its affect on AUDUSD             to give strategy for next week:
- The first choice- FED taper
No matter what FED choose taper 10 billion or 20 billion, US Dollar             absolutely higher than major currencies , and AUDUSD             is not exception.

- USD bullish
- AUD bearish

---- AUDUSD             trend is a strong bearish .

- The second choice- FED no taper.

Everything unchange. What happen before, now continue happen. It means nothing special. the same situation.

What happen to A/U before ?. that is AUDUSD             fell down.

In both cases, AUDUSD             also fall down, but the degree of sell-off A/U is different.

- Taper: Strong sell-off
- No Taper: Sell-off but not too strong.

Technical Analysis:
- Look at on the chart, I can see the correction of A/U respect 38.2% Fib retracement and it will happen now.

The next 38.2% Fib retracement coincide 0.9000 key level, so I believe A/U will test this level and then fall down.

If FED no taper: A/U might test 0.9116 and then fall down to the past low : 0.8846

If FED taper :A/U might test 0.9000 and then fall down to the past low: 0.8846

In both case, I believe A/U will touch 0.8846 low.

Thus, trader can SELL at 0.9000. Target: 0.8846 Stop Loss at 0.9126

Or trader can SELL now , target 0.8846, Stop Loss 0.9190 or Stop Loss at 0.9126 for safe if you don't care FOMC Minutes.

In my opinion, I choose : FED no taper. They will do in March. Hence, I will SELL at 0.9000/0.8990, Target: 0.8846, Stop Loss at 0.9126.

"Please try out my application I write for Forex traders to help them calculate many values such as lot size, pip,margin, pivot point : https://play.google.com/store/apps/details?id=sforex.solution
Any question, visit : https://www.facebook.com/Sforex.solution"
piloteiat
2 years ago
AUDUSD vs. SPX 500 ratio monthly
GLT
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out