Thursday, August 24, 2023
HomeForexPlay of the Day: AUD/USD Downtrend to Resume Quickly?

Play of the Day: AUD/USD Downtrend to Resume Quickly?

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This foreign exchange pair is in correction mode and may discover sellers at these close by inflection factors.

On the hourly timeframe beneath, you’ll be able to see that AUD/USD is cruising beneath a falling pattern line that’s been holding up to now this month.

Can the upcoming U.S. PMI figures let the downtrend achieve traction?

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Foreign exchange Chart by TV

Earlier immediately, Australia already launched its personal flash PMIs for August, and the outcomes weren’t so good.

The manufacturing sector reported a dip from 49.6 to 49.4 whereas the companies business noticed a decline from 47.9 to 46.7, each reflecting a sharper tempo of contraction.

In a while, the U.S. financial system will print its personal PMI figures and possibly report slower enterprise exercise as nicely. Nonetheless, upside surprises may be sufficient to spice up USD throughout the board on September hike expectations and risk-off flows.

Understand that 10-year U.S. bond yields are already on the rise, so one other batch of robust U.S. knowledge may very well be sufficient to increase the rally to recent highs.

If that’s the case, AUD/USD might retreat from these resistance ranges seen on the hourly chart. Specifically, sellers might hop in on the 38.2% to 50% ranges that span an space of curiosity close to the pattern line, former .6500 help zone, and R1 (.6490).

Technical indicators are already reflecting the presence of bearish vibes, because the 100 SMA is beneath the 200 SMA whereas Stochastic is on the transfer down.

If any of the upside limitations maintain, be careful for a transfer again to the swing low at .6366 or right down to S1 (.6340). The road within the sand for a bearish pullback may be the 61.8% Fib at .6521, as a transfer above this might sign a pattern reversal.

Don’t overlook to account for the common AUD/USD volatility when buying and selling this one, too!


This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails danger. Please learn our Danger Disclosure to be sure you perceive the dangers concerned.



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