AUDUSD Targeting 61.8 Retracement. Another Drop in Sight!
You can say that AUDUSD has been taking a beating not only from the USD but also the GOLD market and How the Chinese economy is performing due to the issues with the U.S. Odds are in favour of another drop in AUDUSD both technically and fundamentally . Sentimentally its also looking good to go short on this pair.
Looking at the daily chart AUDUSD is looking to target the 61.8 retracement of the previous swing high before heading for an extra drop. Monthly Timeframe confirms that the price has closed below the crucial resistance level of 0.7600 now potentially acting as support. Another crucial support in sight on the monthly timeframe is the 0.69500 level. See the attached monthly image below:
On the Weekly charts, A descending channel is in progress and test of upper trendline is in sight (61.8 retracement of previous swing). Price will likely target the crucial support of 0.69500. See the weekly chart image below:
In short, the probability is high that the price will retrace before heading down for another drop. However If the price happens to reach the upper trendline of channel on the daily chart, a reversal or high test candle needs to happen so as we can place a trade.
FUNDAMENTALLY:
The AUDUSD has been taking a beating due to the dollar bullishness. Futhermore AUDUSD being a commodity currency linked strongly to GOLD, is also under performing due to decline in GOLD prices recently. Another strong factor that also limits the advance in AUDUSD is also linked to how the chinese economy performing at the moment, which is not very well. Fundamentally a short position is in our favour at the moment
COMMITMENT OF TRADERS:
Sentimentally large speculators have been dumping the Aussie for a while now. open interest in the market is decreasing too. Dumping AUD has eased up in the recent week suggesting a consolidation period might take place
Overall its a good position to go SHORT on this Pair. I will wait for the price to test the upper channel before making any move on this pair.
IF YOU LIKE MY ANALYSIS PLEASE GIVE ME A LIKE AND FOLLOW ME FOR MORE FUTURE ANALYSIS. Please be advised that if a trade opportunity appears i will update below.
Looking at the daily chart AUDUSD is looking to target the 61.8 retracement of the previous swing high before heading for an extra drop. Monthly Timeframe confirms that the price has closed below the crucial resistance level of 0.7600 now potentially acting as support. Another crucial support in sight on the monthly timeframe is the 0.69500 level. See the attached monthly image below:
On the Weekly charts, A descending channel is in progress and test of upper trendline is in sight (61.8 retracement of previous swing). Price will likely target the crucial support of 0.69500. See the weekly chart image below:
In short, the probability is high that the price will retrace before heading down for another drop. However If the price happens to reach the upper trendline of channel on the daily chart, a reversal or high test candle needs to happen so as we can place a trade.
FUNDAMENTALLY:
The AUDUSD has been taking a beating due to the dollar bullishness. Futhermore AUDUSD being a commodity currency linked strongly to GOLD, is also under performing due to decline in GOLD prices recently. Another strong factor that also limits the advance in AUDUSD is also linked to how the chinese economy performing at the moment, which is not very well. Fundamentally a short position is in our favour at the moment
COMMITMENT OF TRADERS:
Sentimentally large speculators have been dumping the Aussie for a while now. open interest in the market is decreasing too. Dumping AUD has eased up in the recent week suggesting a consolidation period might take place
Overall its a good position to go SHORT on this Pair. I will wait for the price to test the upper channel before making any move on this pair.
IF YOU LIKE MY ANALYSIS PLEASE GIVE ME A LIKE AND FOLLOW ME FOR MORE FUTURE ANALYSIS. Please be advised that if a trade opportunity appears i will update below.