There seems to be an early formation of H&S to set for a potential strong bounce back of AUD/USD
Macro factors that set AUD to fall previously:
AUD has remained very weak against the USD due to economic rally in the US (higher FFR) as opposed to falling inflation rate and weakening of the housing market. Therefore, there is an expectation of RBA cutting rate in the next quarter to revive the housing market.
Chart pattern outlook
- Inverted flag pushing the price to break its current support (blue lines and channel)
- Death Cross of EMA 55 - 200 formed and the 55 is further steeping in shorter timeframe.
- Next strong support at 0.6930 might set a strong rally with H&S formation
Note* AUD has remained very weak over the past year, price action is unpredictable and high risk involved.
None trade zone - wait for more signals
Macro factors that set AUD to fall previously:
AUD has remained very weak against the USD due to economic rally in the US (higher FFR) as opposed to falling inflation rate and weakening of the housing market. Therefore, there is an expectation of RBA cutting rate in the next quarter to revive the housing market.
Chart pattern outlook
- Inverted flag pushing the price to break its current support (blue lines and channel)
- Death Cross of EMA 55 - 200 formed and the 55 is further steeping in shorter timeframe.
- Next strong support at 0.6930 might set a strong rally with H&S formation
Note* AUD has remained very weak over the past year, price action is unpredictable and high risk involved.
None trade zone - wait for more signals