ridethepig | Flash Crash In Play For AUDCNH !!
Updated
A major breakdown ahead of the open as markets catch up to the virus disruptions. AUD and global trade are set to suffer for sometime, it will take a brave man to step against this flow.
On the monetary side, RBA tee'd up a rate cut in April with another in Q3 on the cards. Housing has already done the heavy lifting, will need A LOT more help from elsewhere to create a positive outlook in the near-term for AUD. PBOC in a 'whatever it takes' moment with the printer starting to overheat.
On the technicals, the doldrum 4.7-4.9 range remained intact throughout 2019. Since the new decade we have broken the lower end in the range via coronavirus trigger, a screaming warning for what is cooking globally. We are sitting at key support 4.5 which needs to hold otherwise we have a flash crash in play towards 4.3 - 4.25. Unless buyers step in quickly we are set to lose support on panic. Continue to sell weakness if we lose support.
For those tracking USDCNH:
For those tracking EURCNH:
Lastly, for those tracking Chinese Equities:
Best of luck all those in CNH, risks come from further PBOC intervention although looks like they ran out of time! Thanks all for keeping the likes, comments and charts coming!
On the monetary side, RBA tee'd up a rate cut in April with another in Q3 on the cards. Housing has already done the heavy lifting, will need A LOT more help from elsewhere to create a positive outlook in the near-term for AUD. PBOC in a 'whatever it takes' moment with the printer starting to overheat.
On the technicals, the doldrum 4.7-4.9 range remained intact throughout 2019. Since the new decade we have broken the lower end in the range via coronavirus trigger, a screaming warning for what is cooking globally. We are sitting at key support 4.5 which needs to hold otherwise we have a flash crash in play towards 4.3 - 4.25. Unless buyers step in quickly we are set to lose support on panic. Continue to sell weakness if we lose support.
For those tracking USDCNH:
For those tracking EURCNH:
Lastly, for those tracking Chinese Equities:
Best of luck all those in CNH, risks come from further PBOC intervention although looks like they ran out of time! Thanks all for keeping the likes, comments and charts coming!
Note
Note
Markets have been saved by intervention here... no breakdown... yet!Trade closed: target reached
...and a flash crash it was!
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