AUDUSD retracing/consolidating after yesterday's drop
Fundamentals / News / Sentiments:
On Tuesday the RBA maintained the rates at 1.5%. This is seen as a mildly hawkish move. More economist have shifted their stance and abandoning their forecast of a rate cut.
They are expecting the rates to remain at 1.5% for the rest of 2017 and well into 2018. The ECB, BOE and BOC has recently turned hawkish and started talk of rate hikes. The RBA is expected to most likely refrain from further rate cuts to be aligned with the other central banks.
Technicals :
AUDUSD hit a low of 0.7591 and then recovered to stay above 0.7600 big figure.
I see that the pair could be forming a Bear Flag on the hourly chart. Price retracing at the point of writing.
The chart is indicating that there could be a continuation to the downside if this bear flag plays out.
On Tuesday the RBA maintained the rates at 1.5%. This is seen as a mildly hawkish move. More economist have shifted their stance and abandoning their forecast of a rate cut.
They are expecting the rates to remain at 1.5% for the rest of 2017 and well into 2018. The ECB, BOE and BOC has recently turned hawkish and started talk of rate hikes. The RBA is expected to most likely refrain from further rate cuts to be aligned with the other central banks.
Technicals :
AUDUSD hit a low of 0.7591 and then recovered to stay above 0.7600 big figure.
I see that the pair could be forming a Bear Flag on the hourly chart. Price retracing at the point of writing.
The chart is indicating that there could be a continuation to the downside if this bear flag plays out.
Trade active:
Jumped into the trade before the candle closed.
Reason : top of the bear flag, dojis x 2 and current candle bearish
Stops above the flag at 0.7641
Reason : top of the bear flag, dojis x 2 and current candle bearish
Stops above the flag at 0.7641
Trade active:
Now must break below the support line to accelerate down further.
I hope that EURUSD is giving us a queue, and it has started to drop too.
I hope that EURUSD is giving us a queue, and it has started to drop too.
Trade active:
Now this pair must make a LL for more downside.
Potential TP can be around 0.9540 zone
Potential TP can be around 0.9540 zone
Trade active:
Shifting SL to breakeven
Placing TP at 0.7545
Placing TP at 0.7545
