Bottom line: AUDUSD long term structure continues to remain bullish against 0.5505 support. In the near term though, the currency might be preparing to produce a meaningful corrective drop towards 0.6300 mark.

 Fundamental Outlook:

Dow Jones had rallied towards fresh highs in recent weeks around 28400 mark but could sustain. The indices closed around 28248 levels, -0.15% lower yesterday. The indice might be setting up for heightened volatility as markets face Jackson Hole Symposium the next 2 days. If Fed and other Central Bankers hint towards further stimulus and accommodating stand, global indices might rally further.

AUDUSD had risen and managed to close just below the 0.7200 mark yesterday. The risk related currency pair gained traction along with global indices. Going forward, the exchange rate might come under pressure over fears of another wave of COVID-19 infections in Australia.

COVID-19 infections continue to rise in several European countries including Spain, Italy and France. It is possible that the worst affected nations are facing another wave of the pandemic. The condition might derail global economic outlook in the near term and global indices along with other risk assets might face another round of selloff.

Technical Analysis:

AUDUSD might be preparing to produce a meaningful corrective drop after printing highs around 0.7275 levels over the last week. Bears are now looking poised to remain in control and push lower towards 0.6250/0.6300 mark, going forward. Looking lower against 07275 mark.

AUDUSD had remained in control of bulls since 0.5505 lows and managed to carve a series of higher highs and higher lows through 0.7275 levels. Also note that past resistance has been almost taken out at 0.7295/0.7300 levels. Ideally, a pullback should resume anytime soon from here.

Further, the fibonacci 0.618 retracement of the entire rally between 0.5505 and 0.7275 is seen passing through 0.6270 levels. Hence, probabilities remain high for a bullish bounce if prices manage to reach there. Most traders might be inclined to remain short against 0.7275 mark from here on.

Prepared by

Harsh Japee, Technical Analyst.

AUDUSD Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。