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Audusdsignal

AudUsd- 0.7000-0.7050 is very strong ceiling nowLike all Usd pairs, AudUsd also has lost a lot of its value in the past 6 weeks( almost 10%). After reaching a strong resistance above 0.76 at the beginning of April, the pair fell hard and the recovery from the beginning of May was also met with strong selling from 0.73 resistance. Yesterday's test of 0.7+ was reversed hard leaving a very long-tailed Pin Bar on our daily chart and now the pair seems determined for further losses. I'm strongly bearish as long as the price is under 0.7050 and I expect a drop to 0.67 Sell rallies can be a good strategy in AudUsd's case
Short
by Mihai_Iacob
AUDUSDI wrote in my previous piece on this currency pair on 27th April that the price was still making lower lows and lower highs, which suggested the medium-term bearish trend was still in force. Therefore, I was looking for a bearish reversal at 0.7235, which would present an attractive short trade entry point. I was correct about the primary direction of the day, as the price fell over the day and reached as low as the support level which I had identified at 0.7082 shortly before the Tokyo close, but the price gave a nice short-term long trade from that level when it was reached, signaling its intention to move higher with a bullish pin bar on the hourly chart. The price now is back where it was one week ago. The RBA just announced a 0.25% rate hike which some analysts had been expecting, but which surprised many who had been expecting a hike of only 0.15%. This caused a short-term bullish price spike of approximately 1%, but this quickly ended within 45 minutes, with the price retracing back to its consolidation area just above the nearest support level at 0.7082. It seems clear that this support level at 0.7082 is going to be today’s pivotal point. The price is clearly within a long-term bearish trend, so the highest probability setup that might emerge today would probably be a short trade entry following the price getting established below 0.7082. This would likely trigger a further fall to the 0.7006 area which could be strong long-term support. On the other hand, if 0.7082 holds as support, we will probably see the price rise over the short term.
by SmoothJB
AUDUSDThe Australian dollar initially rallied on Wednesday to reach near the 0.72 handle. By doing so, it shows a real chance of trying to recover. However, the market sold off almost immediately and has since looked very poor. By forming an inverted hammer, this suggests that the Aussie is still going to have a lot of overhead resistance. Because of this, I am not necessarily interested in trying to get overly aggressive to the upside, but I do recognize that rallies should continue to be faded. Breaking below the bottom of the candlestick for the session on Wednesday opens up the possibility that we will go down to the 0.70 level, an area that has been important more than once, and an area that would attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. Because of this, I would anticipate that a lot of support should show up there, but whether or not it holds would be a completely different question. After all, the US dollar has been like a wrecking ball against almost everything in the world. The Australian dollar is also highly sensitive to commodity markets, so you will have to keep an eye on them as well. That being said, the commodity markets have looked a little bit soft in general, so it does make sense that we may see negativity here. Although Australia has been outperforming most other economies, the reality is that there is still a lot of concern when it comes to global growth, so it does make a lot of sense that we would see the Aussie dollar reflect the uncertainty of the underlying economy. Furthermore, Australia is highly sensitive to China which has a whole host of problems at the moment. Keep in mind with the coronavirus lockdowns that we see going on in China right now have locked down over half the economy, so it is not very likely that Australia will be a beneficiary of Asian demand for its commodities. Beyond that, we also have the Federal Reserve tightening monetary policy, which continues to drive the US dollar higher in general, which obviously has a significant effect on this market. At this point, I do not see a potential long set up.
Short
by SmoothJB