Promising Setup on the AUDUSD

Donald Trump’s tweet ignite the markets again. This time, POTUS was optimistic about the future deal with China, which on some markets, caused and euphoric buying frenzy.
Tomasz Wiśniewski
Promising setup on the AUDUSD

There is an instrument, which is strongly supported by the positive comments from Trade Wars, most recent comments from the local central bank and own technical situation. This instrument is the AUDUSD.

First of all, AUD is affected by the condition in the Chinese Economy. Big Dragon doing well is supporting the Aussie, simple is that. Second of all, we just got a rate decision and statement from the RBA. Although comments were not so hawkish “Prepared to ease monetary policy further if needed, reasonable to expect an extended period of low rates”, traders decided to eventually buy the AUD. That leads us to the technical situation, where we do have a beautiful inverse head and shoulders pattern, which I mentioned in one of our previous videos. The price broke the neckline and then defended that as a support, which is giving us a green light to go long. What is more, we are currently breaking the major down trendline and price closing a day above the red line, should be a bullish game changer.

Similar setup can be found on the USDJPY. Yen is weakening across the globe. Here, the price also defended the neckline and went higher. For the legitimate buy signal, we need to break the resistance on the 109.

Last one is the USDMXN, Dollar to Peso, where I showed you the symmetric triangle pattern. We are still inside but the buyers are not using the lower line of this formation as a trigger to go higher. This may indicate the willingness to break this support, which should bring us a sell signal. As for now, we wait but once the price will close below the green line, technical analysis will ring the bell to go short.

This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.