At the start of 2016 the PBOC began aggressively devaluing the off-shore Yuan against the USD, imo in an attempt to start the year with a competitive export:import advantage - with the aim of making 2016 a headline "come back" year for China amid the growing GDP growth and Credit bubble worries.
As a result Equities across the board sold-off (-8.5% in a few...
High test of .7500 being rejected, bearish momentum away, another high test on the previous 4HR candle.
Looking at the FIB retracement down to 0.618 - although price still has S1 and S2 pivot point to break through.
the MACD is breaking below the 0 line and RSI shows room to sell down coming off the recent over buying.
Got some news coming up to trade...
Short- and long-term topping formations in addition to continued dollar strength presents a short opportunity. Also, the negative correlation with USDJPY, which has broken resistance to the upside, further endorse this trade.
We have seen a great move from this currency pair since September 2014, I have only been trading for the past 8 months now but I always start my analysis of a currency pair with the MONTHLY time frame. I noticed a very clear trend line and very clear higher highs and higher lows.
Currently USDAUD has come back to the trend line, so I moved down the time frames...
Looks like classic Head and Shoulders
times 2
Support correspond with Fibonacci level
Look at falling volume
But BE CAREFUL, It could be triangle as well which is going to break upwards
Either way I watch it to enter trade - I learned that after heavy news, it pays to be extremely cautious
