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Forex Daily Focus: More downside potential on AUDUSD

The U.S. dollar edged up after FOMC rate decision due to the fact that Fed tried to talk down Q1's weakness. And there is no change in the expected rate path for Fed as markets are pricing in over 70% chance of a hike in June.

At present, most traders will look into U.S. non-farm payroll report to be released on Friday. The focus of forex markets today is the weakness in Australian Dollar dragged down to the lowest level since January 2017 by the slump in iron ore prices. Iron ore price started tumbling after Chinese Premier Li Keqiang indicated the plan to cut steel capacity. Infact based on that, Australia's export values would probably continue to fall further ahead and there is more downside potential in the Aussie.

In terms of technical analysis, AUD/USD has broken below the important support level at 0.7440 (now to become new resistance), thus its intraday bias is turned back to the downside for deeper decline to 0.7310 support zone. I expect further fall will be seen back to 0.7171/0.7160 support zone in the coming sessions. 

In intermediate term, whether there is no clear sign of a larger downtrend resumption yet, I believe in a strong downtrend to 0.6825 then 0.6000 in the next twelve months.

By Jack Huyn

Disclosure:
Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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3 comments:

  1. I sell three times and wait for taking profit https://4.bp.blogspot.com/-TpWHTTdr4so/WQszjuHBDwI/AAAAAAAAAEA/wlHYz_eV4CMRz2zpk2IAPngVaxMh6G-hgCLcB/s1600/045%2Baudusd.png

    ReplyDelete
    Replies
    1. [img] https://4.bp.blogspot.com/-TpWHTTdr4so/WQszjuHBDwI/AAAAAAAAAEA/wlHYz_eV4CMRz2zpk2IAPngVaxMh6G-hgCLcB/s1600/045%2Baudusd.png[/img]

      Delete
  2. We should take profit for sell order on AUDUSD then wait for a rally to sell again.

    ReplyDelete

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