Cha-Ching on Mr. Aussie
Cha-ching!! We reached yet another bearish target in the AUD/USD pair after the global panic helped us reach our previous one. The market is getting back to it senses and September seems to be promising with many trading opportunities. Stay tuned for more signals!
As a commodity currency very much reliant on China, Mr. Aussie sells fast upon any panic concerning his Chinese trading buddy.
With weak Chinese data pressuring the market, Mr. Aussie had no way but down despite better than expected building approvals released this morning during the Sydney session.
Another reason for the AUD/USD fall could be attributed to oil prices. Oil dropped 4% on Tuesday helping Ms. USA to move higher up (just a little bit) but good enough to pressure the pair to reach our target
With this, our favorite Mr. Aussie reached a key support level ONCE MORE after last week's panic drop. The pair formed a new bearish sentiment and continues within the falling channel. As I mentioned in the previous AUD/USD update, we don't want to go crazy with our targets at the moment with high volatility expected to remain present in the market. So best strategy is short term range trading with smaller amounts of profit. For now the pair remains below the Ichimoku cloud. But could this be the pair's last stop or could it continue further down?
Taking a look at the monthly chart, we realize that the Saucer Top pattern has yet to be completed. The pair remains below the Ichimoku cloud in an overall downtrend, with support levels set at 0.6960 and 0.64. A break below 0.7050 could open doors for further drops.
However, any bullish signals coming up with a break above 0.76 could change our outlook to bullish with 0.80 as first alternative target.
Supports and resistance levels:
|Support Levels||Turning Point||Resistance Levels|
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.