AUDUSD may fall 27-52 pips

Hello Friends! SHORT Positions below 0.7110 with targets at 0.7065, 0.7040 and 0.7005 in extension

Alternatively, A break of 0.7110 look for further upside with 0.7125 and 0.7140

With Key Resistance at 0.7110 the sentiment of 0.7065 breaking remains high

The dollar hit a fresh one month low on Tuesday as broad sell off in stock markets failed to boost the U.S currency’s safe haven appeal. The dollar fell 0.3% to 101.79 , its lowest level since April 26


The risk sensitive Aussie dipped 0.41% to $0.70815. This morning, the AUDUSD was leading the rally against the dollar on the back of risk on sentiment and yet another strong day for the Chinese yuan. Reports that President Biden was considering lifting some of the tariffs on China were also helping. We doubt the Australian election had much of an impact. AUD remained strictly tied to China related sentiment and global risk dynamics. For now, AUDUSD should be able to hold above 0.7100 although some material downside risks persist.


The zero covid strategy of Australia’s important trade partner China entails economic concerns so that investors are likely to remain cautious



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