BULLS TAKE CHARGE. BUYING DIPS

2022年5月20日

Hello Friends! I bring you today’s analysis for the AUDUSD pair

A bargain long opportunity will trigger around 0.70470 and 0.70600 and will send the pair towards Thursday’s high at 0.70730 followed by April 21 low at 0.7100.


On the flip side, the USD bulls could regain control if the asset drops below Wednesday’s low at 0.6948 followed by 0.6910 and 0.6830.


The U.S. dollar was headed for its worst week since early February against major pairs on Friday after weighed down by a retreat in the U.S Treasury yields and after the currency's 10%, 14-week uptick.

Concerns are growing that the Fed and other central banks have fallen behind the curve in fighting inflation and will need to be ever more aggressive in tightening policy, inflicting pain on the economy as a consequence.The war in Ukraine shows no sign of seizing either, dampening the view for commodity price driven inflation.


China's path out of coronavirus lockdowns also remains unclear, threatening more global price pressures, even as Shanghai prepares to allow more businesses in zero-COVID areas to resume normal operations from the beginning of June and its ports now operating at 90% capacity. Antipodean currencies have drawn support from the signs of a reopening in China as China is their major trading partner. The Aussie rallying 1.24% this week.


The AUDUSD experienced a steep fall during the Asian Session after meeting Resistance at 0.7050. The bulls remained stronger after breaking and closing above 70 cent level.


This is an article not Financial Advice always do your own research


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