The Australian Dollar finished lower on Friday. The currency also finished lower for the week as investors began pricing in a potential interest rate cut by the Reserve Bank of Australia as early as August. Early in the week, the RBA minutes mentioned it had discussed a rate cut. Mid-week, China announced better-than-expected GDP growth. Late in the week, Australian employment change beat the forecast. Nonetheless, the good news failed to generate enough buying interest to support a gain for the daily or week.
The main trend is up according to the daily swing chart. A trade through .7206 will signal a resumption of the uptrend. The main trend will change to down on a move through .7052.
I always like to compare my analysis with others out there in the Trading World. I tried to poke holes in their AUD/USD evaluation, but they did a great job. In particular when they talked about the main trend…
A trade through .7206 will signal a resumption of the uptrend. The main trend will change to down on a move through .7052.
Lets go to the charts.
A trade through .7206 signals the resumption of the uptrend. An easy way to define an uptrend is price breaking to swing highs.
The main trend will change to down on a move through .7052. An easy way to define an downtrend is price breaking to swing lows. Although I would say price would have to break the swing low at 0.7000.
This evening we will get one step closer to find out if the trend will eventually go up or down because Australia is announcing the consumer price index for the quarter.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.