I’m seeing this reversal pattern on AUD/USD ready to play out in case risk-off flows stay in play.
Check it out before it’s too late!
Before moving on, ICYMI, yesterday’s watchlist looked at a simple trend correction on EUR/USD. Be sure to check out if it’s still a valid trade!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Japanese preliminary machine tool orders jump from 40.5% to 61.4%German trade surplus narrowed from 10.9B EUR to 6.8B EUR vs. 11.3B EUR forecast
Asian shares advance after global stock rally ahead of U.S. inflation data
Russian central bank and government to recognize crypto assets as currencies
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. EIA crude oil inventories at 3:30 am GMT
FOMC member Bowman’s speech at 3:30 am GMT
BOC Governor Macklem’s testimony at 5:00 pm GMT
FOMC member Mester’s speech at 5:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
We saw a pickup in risk-taking over the past few trading sessions, so I’m waiting on more bullish moves from this pair!AUD/USD already completed the retest we were looking at earlier this week, which hints that a reversal from the selloff is underway.
Price has yet to break past the inverted head and shoulders neckline around the .7175 area to confirm that an uptrend of the same height as the chart pattern would follow. That’d be roughly 250 pips yo!
The upward moving average crossover suggest that Aussie bulls are in it for the long haul, but Stochastic is suggesting that buyers could use a break.
If resistance at the neckline holds, AUD/USD could retreat to the area of interest around the .7100 handle.
That might depend on whether or not risk appetite extends its stay in the financial markets. So far, it looks like easing geopolitical tensions are keeping a lid on safe-haven rallies. To top it off, expectations of a slowdown in U.S. inflation could dampen March rate hike hopes and the dollar’s gains.