Currency Analysis Report 1-22-19...Aussie Set To Go Lower
The last time I spoke about the Aussie was three weeks ago and at that time, there were no set-ups.
Currency Analysis Report 1-1-19...Aussie Sinks On China PMI Data
But then the Apple forex flash crash happened. Apple suffered its biggest single-day loss in 6 years and the stock closed the day at its lowest price level since July 2017 after cutting revenue guidance of $9 billion.
The announcement occurred right at the beginning of the Forex trading day, the Japanese session, where there was no liquidity and where the algos put on sell programs. As a result the price absorbed all the buyer orders within the monthly demand zone at 0.6900.
China on Monday announced that its official economic growth came in at 6.6% in 2018 — the slowest pace since 1990. However, many investors around the world expected lower growth due to the ongoing US-China trade war. At this point, China is trying to stabilize the growth through tax cuts and infrastructure spending for a “soft landing.”
China is Australia's largest trading partner in terms of both imports and exports and as a result, Australia is more affected by China's economy than most countries. As China goes, the Australia currency, the Aussie goes.
So how low can the Aussie go, lets go to the charts to find out?
Monthly Chart (Curve Time Frame) - monthly supply is 0.8800 and monthly demand is 0.6900.
Weekly Chart (Trend Time Frame) – the trend is down.
Daily Chart (Entry Time Frame) – although not the best zone, one set-up was already missed when price entered and left the daily supply at this time there is no trade set-up.
So wait for a pull back to the 60 min supply to take price down to the pivot low near 0.6900.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
