AUD/USD: Sustaining gains at hefty levels, daily upcycle in plac

Cycles & Levels: Again, familiar remarks off the weekly and daily, with no changes to highlight. The weekly remains clearly bearish but overextended, while the daily paints a bullish outlook. On the hourly, a new level of interest has been generated off 0.7180 ahead of the more key areas between 0.7150 and 0.71, where I genuinely think good opportunities to buy on weakness can be presented. Also, notice the order flow since Friday has reverted to more bearish, as the sequence of impulsive vs corrective waves favors downward auctions.

Correlations & Volumes: The Aussie has been a sentiment play since last week, on the basis that US and China can work out a deal on trade by the end of the year. The paltry volume on Monday does not communicate much higher levels from here neither does the slight retracement in correlations.The above view of buying into weakness hinges on the US midterm election outcome and must also be seen as dependable to the US and China keeping the glimmers of hope over partially resolving their discrepancies on the ‘tit for tat’ trade dispute heading into the G20 summit in December.