AUD USD 0.80 achieved! Now check the imbalance to short
Updated
Hello traders and analysts.
0.80 target has been hit! Congratulations holders!
Below is our setup for the pair AUD USD at the current position.
The investment strategy is neutral - while a short position is held at exactly 0.80 tap, the possibility for the price to still reach the liquidity engineer a higher low or... the sell off begins. Watch this space.
Zone colour Master Key:
Blue = Monthly
Purple = weekly
Orange = Daily
Grey = 4hour
Pink = 1 hour
The Aussie has now passed 0.76 hurdle first, using a a daily Fibonacci on the daily chart, the price levels of this very strong strength from the Australian Dollar, the Fibonacci retracement of 0.382% is a strong possibility which has now been proved as price action here tapped 0.772 zone and consolidated while still making higher lows - giving confidence of confluence here rising to the monthly imbalance.
The next Hurdle is 0.80 which is our target for the next 3-5 months. [this was the original plan]. The plan since the original analysis, price has been bullish and driving towards the .80 mark as expected. beating the analysis prediction at an early scenario by 1 week.
End of 2021 scenario hypothesis:
However, with the year end - we will now look for two scenarios -
1. Price will revert back using the Fib retracement - looking at a new high low to form before a further bullish movement to the Aussie towards 0.80, where price will then encounter a sell off from the imbalance or use this is a mid way imbalance and continue to hold to 2022 around or above 0.80+
2. Price will continue to flow with minimal setbacks with a high probability of a weaker USD - due to the stimulus and presidential change, with new reforms to boost the economy again tumbling the Dollar.
Now the trend is moving, looking to see a weak dollar maintained in 2021 so this will be great for the Aussie!!
Remember any bearish news on the world will see a rush to the USD, however with the US attempting to remove the safehaven asset for investors, expect a good move for the Aussie to see bullish movements.
Monthly imbalances -
Price has rejected the previous yearly lows of AUD USD at 0.55 to a $1.00
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price is clearly making lower highs
2. - The wicks are closing bullish - suggesting the zone is a fractal buying imbalance for buyers.
AUD USD - weekly time frame imbalances
The weekly imbalances in place have provided
Track the original idea:
November 2020
Update using the daily timeframe
Multi time frame analysis;
AUD USD - Daily
AUD USD - 4 hour
Fibonacci extension target is 0.80 at -0.786
Current sale to hedge the longs
SPX vs AUD USD
The correlation of the SPX and the Aussie is a positive correlation when the SPX is bullish, this allows the AUD USD to remain bullish. With respect for USD purposes where the SPX becomes bearish from an imbalance or has a trend breather, the correlation becomes a sell imbalance for the SPX and AUD based upon the USD having the fundamental safe haven positional stance for investors.
Using Yields:
Be aware of the Yields of the US05 - US20 Year, this can impact the SPX growth and AUD Bullish correlation.
Do you enjoy the setups?
We have 10 years combined analysis experience in world markets.
Offer our technical breakdowns here
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
Team LVPA MMXXI
0.80 target has been hit! Congratulations holders!
Below is our setup for the pair AUD USD at the current position.
The investment strategy is neutral - while a short position is held at exactly 0.80 tap, the possibility for the price to still reach the liquidity engineer a higher low or... the sell off begins. Watch this space.
Zone colour Master Key:
Blue = Monthly
Purple = weekly
Orange = Daily
Grey = 4hour
Pink = 1 hour
The Aussie has now passed 0.76 hurdle first, using a a daily Fibonacci on the daily chart, the price levels of this very strong strength from the Australian Dollar, the Fibonacci retracement of 0.382% is a strong possibility which has now been proved as price action here tapped 0.772 zone and consolidated while still making higher lows - giving confidence of confluence here rising to the monthly imbalance.
The next Hurdle is 0.80 which is our target for the next 3-5 months. [this was the original plan]. The plan since the original analysis, price has been bullish and driving towards the .80 mark as expected. beating the analysis prediction at an early scenario by 1 week.
End of 2021 scenario hypothesis:
However, with the year end - we will now look for two scenarios -
1. Price will revert back using the Fib retracement - looking at a new high low to form before a further bullish movement to the Aussie towards 0.80, where price will then encounter a sell off from the imbalance or use this is a mid way imbalance and continue to hold to 2022 around or above 0.80+
2. Price will continue to flow with minimal setbacks with a high probability of a weaker USD - due to the stimulus and presidential change, with new reforms to boost the economy again tumbling the Dollar.
Now the trend is moving, looking to see a weak dollar maintained in 2021 so this will be great for the Aussie!!
Remember any bearish news on the world will see a rush to the USD, however with the US attempting to remove the safehaven asset for investors, expect a good move for the Aussie to see bullish movements.
Monthly imbalances -
Price has rejected the previous yearly lows of AUD USD at 0.55 to a $1.00
This zone is a powerful buying zone for positional holders like us for two reasons;
1. - Price is clearly making lower highs
2. - The wicks are closing bullish - suggesting the zone is a fractal buying imbalance for buyers.
AUD USD - weekly time frame imbalances
The weekly imbalances in place have provided
Track the original idea:
November 2020
Update using the daily timeframe
Multi time frame analysis;
AUD USD - Daily
AUD USD - 4 hour
Fibonacci extension target is 0.80 at -0.786
Current sale to hedge the longs
SPX vs AUD USD
The correlation of the SPX and the Aussie is a positive correlation when the SPX is bullish, this allows the AUD USD to remain bullish. With respect for USD purposes where the SPX becomes bearish from an imbalance or has a trend breather, the correlation becomes a sell imbalance for the SPX and AUD based upon the USD having the fundamental safe haven positional stance for investors.
Using Yields:
Be aware of the Yields of the US05 - US20 Year, this can impact the SPX growth and AUD Bullish correlation.
Do you enjoy the setups?
We have 10 years combined analysis experience in world markets.
Offer our technical breakdowns here
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
Team LVPA MMXXI
Trade active
Note
still holding shorts, looking for a further sale upon a rejection of the weekly retrace
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