AudUsd Short term Downtrend

The mixed U.S. data in February, the technical recession in the UK, dovish signals from the ECB, and the appreciation of the Australian Dollar driven by the rise in gold prices seem to have completed the correction of the downtrend technically. With the market normalizing somewhat and finding direction, we anticipate a decline in the Australian Dollar.

Technically, the shooting star candlestick formed on the D1 chart on March 8th and the failure to surpass the Fibonacci 50% retracement level support the downward movement.

Comment:

The price dropped to the 61.8% level of the main uptrend without any correction. We are observing a corrective movement starting from this level. We are monitoring the price movement to enter a new sell trade.

Comment:

The expected corrective rally occurred during the FOMC meeting. We are observing how the price will react at the 50% level for the continuation of the downtrend.

Comment:

Prior to the unemployment and inflation data to be released on Thursday and Friday, the market might be in a holding pattern. During this period, we are likely to see broad band lateral movements, and the main trend will swiftly continue after the Core PCE data is announced on Friday. Until Thursday, we might witness rises and lateral movements in the price.