Today’s Aussie CPI data gives us a clean chance to get into the current downtrend. Today’s price action will come straight from the CPI data so if it comes in weak all the momentum will be on the downside and we ‘need’ to get in. So I’ll be looking to get short on weak CPI at market.
Don’t forget we have the FED meeting announcement later today so if the Aussie CPI data is weak and we are short AUDUSD, I’ll need to manage the position ahead of the FED. But once again a strong FED Statement sets this pair up for a much bigger move to the downside!
Current Technicals: Down
Hourly Resistance: 0.6900
Daily Support: 0.6850
AUDUSD HOURLY CHART – Current Price 0.6870
Current Fundamentals: Down
Central Bank Sentiment: Down
Geopolitical Impact: Down
Upcoming Potential Fundamental Drivers
Short positions below 0.6900 with a target at 0.6750.
The Result we need: CPI Q/Q ≤0.3% and/or Y/Y ≤1.2%
Stop Loss: Above 0.6900
Take Profit: Towards 0.6755
NOTE: Just be wary of the price action around 0.6850 as that’s where Daily suppoort resides. If it breaks through here it could be a good place to add to the short position.
Aussie CPI data came out better than expected and completely diffused the downside move.
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