Once again the RBA has shown its cards and they are ‘bearish’ for the AUD. The Minutes were very clear: members agreed that it was more likely than not that a further easing in monetary policy would be appropriate in the period ahead. This is very bearish for the AUD. The RBA recognizes the economy is in trouble and it’s almost ‘panic stations’.
I’m going to wait for the FOMC meeting to pass before getting in as that’s the only fundamental event I can see that would mess this trade up. Of course, Trump could work out a deal with China and that would be AUD positive, but that’s why we have a stop loss to cover this scenario.
Current Technicals: Down
Current Hourly Resistance: 0.6870
Ideal Retracement level: 23.6% Fibonacci @0.6966
AUDUSD DAILY CHART – Current price 0.6843
Current Fundamentals: Down
Central Bank Sentiment: Down
Geopolitical Impact: Down
Upcoming Potential Fundamental Drivers
Short positions below 0.6870 with a target at 0.6435
Above 0.6870 we should see a quick stop loss run towards 0.0.6966 but that will be very short-lived.
If trading the technical levels: Trendline Trader
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