Similar to NZDUSD and other USD crosses, we have witnessed a spectacular rally in AUDUSD too. From a technical point of view, price broke out strongly from a descending TREND LINE(Purple line in my chart). So, has the trend changed? Well, I believe it's too early to assume that there has been a change of trend in AUDUSD. These year-end breakouts on the back of low volume can't be trusted. AUD being a risk asset is vulnerable to a violent BEARISH reversal if any sort of bad news resurfaces( e.g. US-China trade war, Iran conflict, Hong Kong, etc). Also, 0.70 area was a strong support area previously which can now be a strong resistance zone. Hence, depending on BEARISH PRICE ACTION in lower TFs, Traders can look for SELL entries between 0.7020-0.7050 with SL above 0.7100. TPs can be set at 0.6950, 0.6870 respectively.
Comment
⋅
WEEKLY CHART shows AUDUSD respecting the broken Support turned Resistance zone
Trade active
⋅
Three SELLs 0.7022, 0.7007 and 0.6995
Comment
⋅
We need a decisive break of the 100H EMA now for the sells to be safe.
Unless tonight chinas numbers come out great then it will go up. If the data is bad then yes your sell short would be correct. Lets see
TraderAvDM
⋅
@IllyrThrace, It has got less to do with today's data in my opinion
IllyrThrace
⋅
@TraderAvDM, i dont know. Other currencies had excellent charts and collapsed on bad data.i do think aud was way over bought for really no reason. Their economy is awful
IllyrThrace
⋅
@TraderAvDM, do you think more sell of now due to iran tensions??