Market Outlook and Analysis (Sept2019 Week3)

Currency Pair: AUDUSD

Fundamental Analysis – AUDUSD

The Australia cash rate is sitting at a record low at 1.00%. With 30 countries all over the world slashing their interest rates, the RBA is no different. The market is already expecting the RBA to slash rates to 0.75% in November. RBA could have their eyes on the target 0.25% but are reluctant to go into negative territories.

There were no major economic news coming out for Australia in the past week. Only looking towards the employment numbers next Thursday at 9.30am Singapore time.

Technical Analysis – AUDUSD

AUDUSD D1 Chart – Expecting the bears to come back into the market

The AUDUSD closed the week around the 50% retracement levels from the decline since mid-July. The Doji candles at these levels coupled with the near overbought RSI, indicating to us that this retracement is probably about done. We should expect to see the bears coming back into the market again to push this pair down.

AUDUSD H4 Chart – At Sell Zone + Rising Wedge

The H4 Chart is showing us that the pair is approaching the Sell Zone. There is also a Rising Wedge pattern forming at the zone. Giving me a bearish bias this coming trading week. Will look to short if it rejects the Sell Zone again or when it breaks below the wedge.


Announcements

Hi Everyone,

Calling out to those of you who are based here in Singapore.  We are running a 3-hr Workshop on the 17th Sept (7pm). For this session, we are joined by Ms Gina Chua, a Senior Financial Consultant, to share about building your Financial portfolio.  

Register HERE today, bring your friend along too.