US500: A further correction towards 5192 before resuming purchases.
Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
Rabobank forecast: AUD will fall further
2021-10-25 • Updated
The aussie is expected to plummet for the next six months. What is the reason?
What happened?
AUD/USD has been dipping for 5 days in a row. That hasn’t happened since the coronavirus outbreak at the beginning of March. "We see scope for AUD/USD to pullback," claimed analysts from Rabobank. The Australian dollar has been rising for almost half a year, driven by the optimistic prospects on recovery and the steady rebound in Chinese economic activity.
However, investors’ enthusiasm has waned these days as new virus cases have started rising again and therefore the recovery will take more time than initially expected. Moreover, there are loads more factors except a risk-off sentiment that also weigh on the overall sentiment, undermining riskier currencies like the aussie. Among them are the uncertainty over the US presidential elections in November, the impasse of the US fiscal stimulus, and, of course, US-China tensions.
Elsewhere, the Reserve Bank of Australia is interested in depreciation of the national currency to boost exports. The RBA also mentioned that lower rates would "definitely be beneficial for the Australian economy". Those prospects by themselves have already pushed the aussie to the downside. Traders eagerly await the RBA statement on October 6 for more clarity.
Technical tips
AUD/USD has been plummeting since Friday. It has even broken down the six-month uptrend and also the significant support of 0.7150. Therefore, the way towards the next support of 0.7000 at the 100-day moving average is clear. If it manages to cross it, the pair may drop to the next support of 0.6920, which it failed to break in early July. Resistance levels are 0.7150 and 0.7200.
Similar
US30 Trading Strategy and Key Levels: Where Are the Supply and Demand Zones?
Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150
US100: Consolidated and preparing correction below 18100. Key levels on H4!
Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...
Latest news
USD: Powell Speaks on Cutting Interest Rates
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
WTT: Currency Pairs To Trade In April
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
EURUSD: Seeking liquidity in weekly selling zones. Key intraday levels.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
