InvestMate|AUD/USD Perfect time to buy🦘AUD/USD Perfect time to buy.
🦘Can we say that with this pair we are in an ideal place to buy?
🦘It seems to me that in the case of this pair we have already reached the current lows.
🦘Following the 75 point hike in the US interest rate on 2 November, the market assumes that the next one will be only 50 points and looking at the economic situation the FED does not have such a push to raise rates anymore.
🦘Today, 3 November, we also got important data on the trade balance, which positively surprised investors with high increases, far better than what the market was pricing in.
🦘1 November we also had the interest rate decision in Australia, which rose to a level of 2.85%, far less than the market was expecting, with the increase reaching 3.1%.
🦘But looking at inflation which is already reaching new highs of 7.3% definitely more than most expected. Looking at this perspective of a small increase in interest rates, we can only expect further increases in the current economic situation.
🦘What's different in the US where inflation has been slowing for more than 4 months now and the next reading will be on 10 November. Which puts an effective brake on future rate hikes.
🦘Looking at the last few weeks, we see clear signs of a weakening trend of dollar appreciation and the market is slowly discounting a gradual weakening of the dollar against other currencies.
🦘Turning to the chart.
🦘We see that we bottomed on 13 October.
🦘The uptrend has already been in place since 5 April this year.
🦘More importantly looking at the current medium term outlook we have today found ourselves at a very important support line, which in the past has been almost unbreakable resistance, repeatedly tested from below currently could be a strong support zone for the price.
🦘This looks like an ideal place to play the upside.
🦘Looking also at the fact that it is a fibo level of 0.5 or 50% of the entire upward wave from the bottom to the current peak.
🦘Only confirms me in my assumptions.
🦘Taking long positions at the current moment the most sensible option would be to set a stop order below the 0.63 level where the next strong level of the 0.618 upward wave is located with profit potential at new highs and for the patient even above them.
🦘 The high risk ratio may compensate for the time to wait for the position to materialise.
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