Holding optimistic about China/US deal
The AUDUSD is traidng close to the closing degree from Friday, however is off the highs reached within the early minutes of buying and selling immediately (excessive reached zero.7108 on my chart). The worth stays above the lows for the day regardless of the sharp run decrease in shares after earlier positive aspects. Usually there’s a run out of dangerous pairs just like the AUD, but when there’s a US/China deal, it ought to assist the AUD which depends on China for development (assuming the tip of tariffs helps China’s financial system).
Technically. wanting on the 5 minute chart above, the pair has seen up and down strikes, however continues to be beneath the 100 and 200 bar MA on the 5 minute chart at zero.7083-85 (blue and inexperienced traces within the chart above). That’s an intraday barometer space for the bulls and bears. Keep beneath is extra bearish. Transfer above is extra bullish. A transfer beneath the decrease development line at zero.7076 needs to be extra bearish.
Taking a broader take a look at the hourly chart, the pair on Friday examined a decrease flooring degree at zero.7069-71. There are three separate lows at that degree going again to February 14th. A break beneath ought to have merchants wanting towards the zero.70534 low from Feb 12. Transfer beneath that degree would open the door from much more draw back momentum.