Fundamentals
Succumbing to the global policy unwinding pressure and rising inflation fears, the RBA's dovishness led to the AUD sell off against the USD. The drop is cushioned by the decrease in volume as traders wait for Fed's FOMC meeting this week. Trades expects the Feds to announce taper during the meeting this week.
Technicals
We are essentially waiting...
Fundamentals
EUR(Bearish)
ECB unlikely to raise interest rate in 2022 despite high inflation of 3.4%
says medium term is still subdued, unlikely to meet conditions for rate hike.
Discouraging European Data German Sales down, Industrial Production down,
but PPI jumped to 16.0% (hinting inflationary pressure)
USD (Bullish)
Feds announced $15 billion per...
During the FOMC press statement, there is an irrational reaction from the market. The market anticipated $10 billion reduction in bond purchases and the actual figure came out $15 billion. Even though the fundamentals supported the EURUSD bears, the market shot up. However, after the market calms down, the direction was as anticipated.
Context
The AUDUSD has broken market structure and trendline indicating a sell-off to the base.
1st Play of Head & Shoulders
I start the play with 2 step head and shoulders. As the market retraces to the level of the left shoulder and find confluence with 61.80% fib, I took a short, taking profit at 0.00% fib which is also the next support zone.
2nd Play of...
