Technical Analysis
Having recently broken the trend line in April resulted in a Lower High as the price failed to retrace back above the trend line which was once support has become resistance. This week we made a Lower Low in AUD/USD suggesting the Bears have gained momentum. These confluence of these factors suggests that AUD/USD bearhish momentum is rallying. We will how the week closes but analysis suggests we will close below previous lows.
Intermediate-term Outlook – Downside Risks: Whilst contained below .767 / .777 we see a downside risk for .716
Lower Targets would be .690 and .680
What Changes This? Above .777 shifts the outlook towards a bullish theme.
Fundamental Analysis
The beaten-up Aussie dollar continues to stumble toward the cliff edge as we made fresh Lower Lows this week. Rumours surface that the US and China are to resume trade talks.
Overnight Bloomberg cited three people familiar with the plans as saying negotiations may resume soon as officials race towards a July 6 deadline, which may lead to a rally of USD Pairs. Furthermore, AUD has taken the strain of global trade frictions as well as emerging Asian market angst on both the trade front and concerns over rising US interest rates.
Having recently broken the trend line in April resulted in a Lower High as the price failed to retrace back above the trend line which was once support has become resistance. This week we made a Lower Low in AUD/USD suggesting the Bears have gained momentum. These confluence of these factors suggests that AUD/USD bearhish momentum is rallying. We will how the week closes but analysis suggests we will close below previous lows.
Intermediate-term Outlook – Downside Risks: Whilst contained below .767 / .777 we see a downside risk for .716
Lower Targets would be .690 and .680
What Changes This? Above .777 shifts the outlook towards a bullish theme.
Fundamental Analysis
The beaten-up Aussie dollar continues to stumble toward the cliff edge as we made fresh Lower Lows this week. Rumours surface that the US and China are to resume trade talks.
Overnight Bloomberg cited three people familiar with the plans as saying negotiations may resume soon as officials race towards a July 6 deadline, which may lead to a rally of USD Pairs. Furthermore, AUD has taken the strain of global trade frictions as well as emerging Asian market angst on both the trade front and concerns over rising US interest rates.