AUD/USD - waiting for the Chinese sell-off

The AUDUSD is almost setting up for a new short trend wave. It has broken its major support but the sell-off hasn't happened yet.

The key factor for the AUDUSD is the Chinese market. These days, the Shanghai Composite leads the development - not only from a safe-haven point of view, but also because of the connection of the Australian and the Chinese economy.

The second factor is Crude Oil. Although Crude has also broken its major level at $30.00, it's still waiting for the follow through.

Now it's waiting time for the AUDUSD. Only if China and Crude pick up momentum again, the AUDUSD will move.

Comment:

The Shanghai Composite is 3% higher today. Makes it very unlikely for a short AUD/USD move going into the European open. Short positions are squeezed.