Chapter 34 Is AUDUSD on the way down?
11/05/2023
Summary
United States' significant events CPI led the market
Fundamental analysis
Fundamentally on this pair of AUDUSD, Tomorrow in Australia we have consumer confidence index data will be released With negative expectations and yesterday in the USA CPI inflation rate has been released with almost similar to what the market expected very near to 5% The result was 4.9% So fundamentally market take it as still positive for the USD as a currency still high inflation and still need Federal Bank to take some action by increasing interest rate so it was a positive news
U.S. CPI YoY
Prev: 5%
Act: 4.9%
Australia Westpac Consumer Confidence Index
Prev:9.4%
Fcst: -1.7%
Technical analysis
In this 1-hour diagram chart, the market price now is 0.67014, we expect the market to push the price up to the previous supply zone at 0.67500 After finishing this pullback We expect the price to push down to the oldest demand zone at 0.66500 Creating channel to the downside By forming lower high and lower low with the 20-moving average point down.
Trading Recommendation
Trading Direction: Short
Entry Price: 0.67364
Target Price: 0.66589
Stop Loss: 0.67762
