- 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.
- 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