🔔 Australia projects a recovery from the pandemic footprints on the economy. The third quarter CPI announced 1.6% growth was beyond the expected 1.5% and more importantly the YoY CPI of 0.7% signalled an economic recovery of the state.
🔔 Despite the growing numbers, AUD was not able to overtake the US Dollar and continued the down slide this week and the pair yesterday only lost 0.92% against the USD. As the Election day gets closer, the rises in the market, giving an edge to the US Dollar in spite of continuous losses of the US Indices.
🔔 The US GDP and Jobless claims were beyond expectations, showing a recovery in the US economy, hence gains of the DXY . However, things might change dramatically during the election days.
🔔 The 4H chart of the pair has formed a and one more leg up is required to complete the 5-wave ABCDE correction.
A breakout from this triangle could trigger another round of impulse waves. The on other hand signals the continuation. The divergence on a demonstrates the power of bears, whereas all attempts are put to a stop lower than the previous.
🔔 Since the impulse wave of March 19, AUDUSD has formed triangle patterns two more times, though they were not of a greater cycle as this last one, all two were then followed by another impulse wave, let’s see if this triangle also triggers an impulse of a greater cycle. might as well support the short-term uptrend.
🔔 I don't think that AUD will drop below 0.70200 and I still look forward to seeing the growth towards 0.71220 - 0.71340, although if that happens look for support levels at 0.69700 and 0.69250.
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