Market Outlook and Analysis (Sept2019 Week4)

Currency Pair: AUDUSD

Fundamental Analysis – AUDUSD

The Australian Bureau of Statistics on Thursday reported that the unemployment rate in August ticked up to 5.3% from 5.2% and the AUDUSD ended up 100 pips lower for the week. The disappointing data is causing the market top price in a potential rate cut. Currently the market is pricing in a 80% chance of a rate cut in October.

On 19th Sept, the FOMC made a 0.25% rate cut decision. It was a mixed decision but however the FOMC believes that the US economy is in a good shape.

Technical Analysis – AUDUSD

AUDUSD H4 Chart: (Trade Review) – Resisted by Sell Zone as expected and fell

As per last week’s trade setup, I was expecting a reaction at the Sell Zone, and it did perfectly. Waited for the confirmation before I went short. Too profit at the 0.6817 horizontal level for a +43pips profit.

AUDUSD D1 Chart – The Bears indeed emerged again

The AUDUSD got resisted by the 50% retracement levels from the decline since mid-July. The bear came in to push the pair down after a series of doji in the past week. The pair closed at the lows of the week. There would be no surprise to see this pair test the 0.6680/0.6700 lows.

AUDUSD H4 Chart – Short on Rallies, as long as no change to Fundamentals

The 100pips drop in a week, indicates more downside in the following trading week. The trade idea for next week would be to short on any rallies. Hopefully we could see a bounce up to the 0.6800 levels for a nice short on the support turned resistance levels. Targets could be as low as 0.6700

A Special Invitation

Hi Everyone,

For those of you who are based here in Singapore.  We are running a 3-hr Workshop on the 10th October (7pm). Best suited for people who are open to explore Forex Trading, currently trading but still not getting the results your desire and for those who wants to make a difference in their Financial Goals.   

Register HERE today, bring your friend whom you think will benefit from this session. Growing our Trading Community together