AUD/USD + RISK ON SENTIMENT⭐️Key Takeaways⭐️
✔️ AUDUSD is that risk-on sentiment currency - should monitor SPX for correlations.
✔️ Gold continues to maintain it's bull run but struggled to break above $2000. A correction is gold could signal strength with the buck.
✔️ Small timeframe rounding top action but could transition into a gartley pattern
⭐️Technical Analysis⭐️
As long as the US continues to see a rise in COVID19 cases, we should expect to continue to see further USD weakness.
AUDUSD on the daily showing clear divergence with RSI. Seems like this divergence theme is getting pretty played out by now as we've seen divergence across the board for several weeks now with zero follow through.
Ascending support maintains with this pair. Next critical upside resistance level is around the 0.73 handle. If we manage to break below the ascending support, that could open up further downside as the USD enters its correction phase to the upside. Downside levels of support to look out for include 70, 69 and 68 handles.
Regards,
Michael Harding
RISK DISCLAIMER
Information and opinions contained with this video are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors.
