Sell AUDUSD | Current Market Sentiment

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Our trade call is to sell AUDUSD at market with a stop above 0.7050. The aim is to be at breakeven before Australian employment release in Thursday's Asian session. If crude oil inventories cause a strong rally in WTI then this trade may need to be cut, depending on personal risk preferences and own analysis. These sentences are fixed, but the market is not - be dynamic with new data. Target around 0.6950.

Current Sentiment:

Yesterday's NY session saw the short-term rally in WTI capped and subsequently further downside. The CAD followed suit with CADJPY finding support for the fourth time just above the 82 handle.

Today's Asian session saw a dissipation of recent risk-off tones with yen pairs rallying after the PBOC fixed the yuan relatively in line with yesterday's close, keeping the reference rate stable for the fourth consecutive day. Risk appetite was enhanced by better than expected readings on Chinese trade with exports falling only -1.4% y/y versus expectations of -8% and imports falling -7.6% versus expectations of -11.5%. This gave risk currencies such as the AUD an extra boost and saw further weakness in the safe-haven yen. AUDJPY was up 200 pips from yesterday's lows.

Today's London session is again very light which suggests intermarket correlations, risk sentiment and technical levels will be the main driver of price direction.

P.S - If you want to learn more about how I trade, check out the link below

Jarratt Davis - Free Forex Course

 

Elwis Wright

Private
Messages
11
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IMHO, From present levels, I wish AUDUSD to go further towards south as recent rate-cuts and a reversal from 0.7850, followed by break of support-confluence, mentions brighter chances of the pair's drop to 0.7330 mark.
 

Elwis Wright

Private
Messages
11
Having lost majority of its strength, due to reversal from 0.78535-50 horizontal area, also backed by surprise inflation and an RBA's rate-cut, the AUDUSD is likely holding 200-day SMA support, which if broken can further drag the pair towards 0.7100 area.

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