Australia, next leg down
Technical
The head and shoulders formation on the AUDUSD currency pair might soon break support. We have been tracking the Australian dollar for a few weeks now and the currency looks like it is finally ready to drop lower. Currently the AUDUSD is bouncing off neckline support which is keeping from the trade being triggered. As soon as we have a close below support at 0.70435 the currency is likely to have a strong impulse movement to the downside. We could test the flashcrash support at 0.67500 from January 2nd. The AO indicator confirms the increasing pressure on the Australian dollar.
Fundamental
The RBA has decided to keep the interest rate stable in March with an inclination that they are “open” to lower rates if the world slowdown of economical growth is to persist into the 2nd and 3rd quarter. Yearly GDP has fallen to 2.3% with quarterly GDP dropping to 0.2%. The forecast looks similarly bleak with a slowdown even further on the horizon. Volatility is expected during Non-Farm Payrolls and during the week of March 11th with consumer confidence data sets.
The head and shoulders formation on the AUDUSD currency pair might soon break support. We have been tracking the Australian dollar for a few weeks now and the currency looks like it is finally ready to drop lower. Currently the AUDUSD is bouncing off neckline support which is keeping from the trade being triggered. As soon as we have a close below support at 0.70435 the currency is likely to have a strong impulse movement to the downside. We could test the flashcrash support at 0.67500 from January 2nd. The AO indicator confirms the increasing pressure on the Australian dollar.
Fundamental
The RBA has decided to keep the interest rate stable in March with an inclination that they are “open” to lower rates if the world slowdown of economical growth is to persist into the 2nd and 3rd quarter. Yearly GDP has fallen to 2.3% with quarterly GDP dropping to 0.2%. The forecast looks similarly bleak with a slowdown even further on the horizon. Volatility is expected during Non-Farm Payrolls and during the week of March 11th with consumer confidence data sets.
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