AUD/USD -7/3/2022-

• Aussie has got a high positive correlation with gold
• Historically, that correlation was close to 80%
• The Australian currency rose almost 400 pips against the USD, unlike most of the majors that fell against the greenback in the recent days and weeks.
• Technically, the pair broke above the higher highs/descending trend-line that's been in play since Jan 2021.
• At the time of writing, bears are testing the mentioned trend-line and trying to close below it, while bulls are defending it and trying to secure a daily close above it.
• If the bears win, downtrend will resume
• If bulls win, first target is the Oct 2021 high near 0.75500 followed by 2021 highs and round figure 0.80
• Scenario 1: Long with stops below the trend line resistance turned support
• Scenario 2: Short if pair is back trading below the line. Conservative traders should wait for a confirmation/ 2 or 3 daily closes below the line while aggressive traders may enter before any confirmation and secure more pips.


Good luck