Last week on Monday in our Weekly Market Outlook, we pointed out that there was a serious chance to see a significant push above the resistance around 0.7300/7330 in the AUD/USD currency pair. While we indeed saw such an attack, the follow through failed to appear, and AUD/USD fell back 0.7300 USD. One reason for that was surely the push lower in US equities and here especially within the US technology sector, where Apple shares saw an extension of their losses to over 20% from their ‘All Time Highs’, marked on 3 October 2018, whipping out more than 220bln USD in market cap within six weeks (note: this is more than the annual GDP of Portugal for 2017.)
Source: Economic Events 21 November 2018 – Admiral Markets’ Forex Calendar
But now the good news for the Aussie: on a daily chart, AUD/USD can be considered short-term bullish as long as we trade above 0.7150 USD, making another attempt to sustainably break above 0.7300/7330 USD possible. On top of that, the Aussie is about to enter a statistically and seasonal bullish market environment from Mid-December till the beginning of January. With this in mind, AUD/USD should be closely watched over the next few days and weeks of trading. Any signs of a stabilization and buyers stepping into the ring could be the starting point of another stint towards and above 0.7330, and after a break with a first target of around 0.7430/7450.
Source: Admiral Markets MT5 with MT5SE Add-on – AUD/USD Daily Chart – Data Range: 5 Nov, 2017 – 12 Nov, 2018 – Accessed: 20 November 2018, 11:00 PM CET
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (hereinafter “Author”) based on the Author’s personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.