Sell AUDUSD Because Chinese Growth Slowdown Isnt OverThere are plenty of technical reasons to avoid AUDUSD. Nearly all exponential moving averages, which more heavily weigh the more recent days than the ones further away, point towards a continuation in the downward trend. The bull bear power index also indicates that AUDUSD long is an overcrowded trade. Indeed, data from DailyFX backs up this claim with its data from its parent company IG which can be found here: www.dailyfx.com
But the thematic background is truly what will mainly driving this paid in conjunction with the likely poor data releases this weak. But the weakness in AUDUSD doesn't stem from inherent weakness in the Australian economy as much as it does weakness in the Chinese economy. Perhaps one could read this as splitting hairs since the Aussie economy is so dependent upon the Chinese. Either way, China's growth slowdown which is likely to continue amid speculation of prolonged trade war and tariffs will continue to put downward pressure on this pair. Never forget, you can trade the trend until its no longer a trend. Right now, we're still knee deep in bear signals.
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