Forex Analysis Report 7/17/18 – AUD/USD Is Directionless At The Moment
The Australian dollar aka the “Aussie” is a commodity based currency. Because the Australian economy is a base metal exporting economy, as China goes, the Aussie goes and closely follows the movement of copper prices. Due to the trade war between China and the US in recent weeks, the AUD/USD pair has been range bound the last four weeks. Nevertheless, lets look at the charts for potential clues where the AUD/USD pair might head next.
Monthly Chart (Curve Timeframe) – monthly supply is at 0.81000 and monthly demand is at 0.69500 and in recent months broke the monthly up trend line that was established back in 2016.
Weekly Chart (Trend Timeframe) – the trend is to the downside and broke the weekly demand at 0.75500 at the beginning of July.
Daily Chart (Entry) – price is range bound. If price breaches and closes above 0.75000, price will head North to the daily supply zone at 0.76000. If price breaches and closes below 0.7300, price will head South to the daily demand zone at 0.71500.
Look to the Copper Market for clues to see if the upper or the lower end of the range is breached first. If price continues to go down, I think the lower end of the range will be breached first.
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.
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by rollandthomas
I like your long-term analysis.
In the short term, I believe that AUD/USD is in an uptrend. Just opened my long position at 0.7421 :)
Good luck on the trade.
I removed my position as soon as I saw that the reaction of buyers on the support was very weak!
Thanks anyway :)