AUDUSD BEARISH

Fundamentally the Australian dollar is bearish. This is due to the rising number of covid cases caused by the Delta variant. Due to this the overall sentiment is more towards risk off. Whenever this happens people opt more towards the USD and JPY currency

If we looked on the technical side we can see that the Australian dollar has had a very good rally this past week. Price has also retrace to the upper channel of the higher time frame. Price could drop from this point or price could retrace a little bit further to touch the trendline above before dropping. The risk 2 reward seems promising especially if the price touches the trendline above. However the news tomorrow by the fed can change the direction therefore please ensure you trade with confirmation