EURAUD: When China's news make Aussie and other Asians strong!

My dear friends,
Thursday, 14 September, 2023 and ECB interest rate decision is on the way. We'll wait for confirmations.

But before ECB meeting, series of several bad economical news over China's financial stability were published. Market reacted to them rationally. Suddenly the red dragon start to regain it's reputation. Good news for China means stronger Aussie, Kiwi and Yen!

A personal belief: Markets are not optimist to China's long-term relations with the free world and it makes them avoid longer term investing on Asian currencies. We could expect a more bearish weeks for them in next months, however, we don't hold that much so a mid-term bearish correction could be a opportunity for us!

Regarding the weekly chart, some more corrective weekly candles are expected.
snapshot

Considering the daily timeframe, market structure has changed so there could be a stop hunt around 1.68950
snapshot


The horizontal level could be a high probable and good R-to-R entry point.

Levels are based on: Order-blocks, Pivot Points, Support and resistance and Reversal points.

Comment:

Remove the order before today ECB rate decision.