AUDUSD being one of the key risk on pairs, got very close to 0.73 which served already as resistance in January looks to be a likely turning point and return to strong sell off on Risk on assets (crypto and equities). DXY also breaking above recent levels continuing over a year long move from lows ahead of J Powell's speech later on today and ADP/NFP numbers this week. While it is hard to predict exact further impact from Ukraine conflict the most likely two scenarios are as presented, ranging between 0.7 - 0.73 or eventual break below 0.7.
For those trading FX this is a good area for a safe Short trade.
For those trading FX this is a good area for a safe Short trade.
Comment:
Move down on this pair happened but only briefly before the rally up to 0.755, but recent price action returned to the strong support at 0.7. A confirmed breakout below 0.7 would confirm fears of recession and likely continue the current slump on all risk-on assets
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