AUDUSD stays firm into G20 with reports of a US-Sino trade truce

  • The Australian Dollar is often viewed in the Forex world as a barometer of risk appetite.
  • The rebound from mid-June has partially reflected the US Dollar weakness from a more dovish Fed, but also a firmer Australian Dollar, driven partially by higher Base Metals prices.
  • Also, reports of a possible trade war truce at the G20 this weekend between Chine and the US is helping AUDUSD to the upside.

AUDUSD intermediate-term bull threat to critical .7022

A further push higher on Wednesday having dipped and rebounded exactly from our .6940 support, building on Tuesday’s break through the key .6973 level (that saw an intermediate-term shift from bearish to neutral), reinforcing the whole recovery effort from mid-June, to keep the threat higher Thursday.

The late June push above the .6973 level set a broader, intermediate-term range as .7022 to .6829, BUT with strong threat to .7022 for a bullish intermediate-term shift.

For Today:                                                        

  • We see an upside bias for towards .6999 and critical .7022, maybe .7048.
  • But below .6940 opens risk down to .6901.

Intermediate-term Range Breakout Parameters: Range seen as .7022 to .6829.

  • Upside Risks: Above .7022 sets an intermediate-term bull trend to aim for .7206 and .7295.
  • Downside Risks: Below .6829 sees an intermediate-term bear trend to target .6738.

4 Hour AUDUSD Chart

4 hour AUDUSD Chart 2019-06-27

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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