Aussie: Technical Analysis contributes to the downtrend.
I admire traders who BUY Aussie last week, they nearly were right after RBA Meeting, but unfortunately market reversed the trend so fast and the appetite for Aussie changed. Strong payrolls on Friday destroyed the hope to buy Aussie at low level, and we should abandon to buy AUDUSD currently to talk about the SHORT.
Needless to say I believe that FED will hike rate on December and market would pricing for strong Dollar ahead the meeting. Last week, RBA disappointed market by keeping the rate at 2%, but it doesn't mean they will not cut rate anymore. I THINK THAT THEY WILL DO IN 2016. ONE MORE RATE CUT IS POSSIBLE AND 2% IS NOT THE FLOOR FOR RATE. The expectation of one more rate cut will drive Aussie lower.
Fundamental Analysis is suppporting for weak Aussie while Technical Analysis also reinforces for Fundamental.
Look at on the chart.
- A STANDARD HEAD AND SHOULDER PATTERN I RARELY SEE WHEN ANALIZE CHART. AUDUSD broke the neckline of head and shoulder pattern, it means the downtrend is confirmative.
- 0.7200 is a strong resistance zone. AUDUSD was unsuccessful to break the resistance zone and bounced from this level.
- The descending trend line: AUDUSD also rejected this trend line. It also is SMA100
- AUDUSD tried to move above Kumo cloud, but unfortunately it again moved under the cloud to confirm for downtrend.
With those TA signals, I have enough clues to go to a conclusion that: We should drive Aussie lower to the year low 0.6900 even break it .
Needless to say I believe that FED will hike rate on December and market would pricing for strong Dollar ahead the meeting. Last week, RBA disappointed market by keeping the rate at 2%, but it doesn't mean they will not cut rate anymore. I THINK THAT THEY WILL DO IN 2016. ONE MORE RATE CUT IS POSSIBLE AND 2% IS NOT THE FLOOR FOR RATE. The expectation of one more rate cut will drive Aussie lower.
Fundamental Analysis is suppporting for weak Aussie while Technical Analysis also reinforces for Fundamental.
Look at on the chart.
- A STANDARD HEAD AND SHOULDER PATTERN I RARELY SEE WHEN ANALIZE CHART. AUDUSD broke the neckline of head and shoulder pattern, it means the downtrend is confirmative.
- 0.7200 is a strong resistance zone. AUDUSD was unsuccessful to break the resistance zone and bounced from this level.
- The descending trend line: AUDUSD also rejected this trend line. It also is SMA100
- AUDUSD tried to move above Kumo cloud, but unfortunately it again moved under the cloud to confirm for downtrend.
With those TA signals, I have enough clues to go to a conclusion that: We should drive Aussie lower to the year low 0.6900 even break it .
