AUDUSD: The last few months have not been the best for the Australian dollar. Tension between the USA and China caused by the increase in import duties to the USA and the announcement of the introduction of new ones, caused a significant drop in quotations of the Australian currency to the U.S. dollar despite the fairly good prices of iron ore on which this currency is also heavily dependent.
If we look at the daily chart, we will notice that since the end of January this year the quotations have been moving in the downward channel of a height of 230p. Friday’s session (17.05) ended with overcoming the support of this channel, and the quotations stopped at 0.6860. Probably Monday will decide on the further fate of AUDUSD, i.e. in what direction the market will decide to push the quotations. Because of some important political event in Australia, I am focused on growth….
Considering that the weakening of the AUD has also been influenced by parliamentary elections and uncertainty as to whether the current government is able to stay in power. The results of the (Sunday) elections indicate that Prime Minister Scott Morrison and his party won the elections and will have a majority in the Australian parliament, which may improve moods in pairs with the AUD. Confirmation of the change in the trend will be the appearance of a minimum and a rising “bar” on the MACD histogram at the end of the day.
If we look at chart H1 in terms of envelopes indicator, the situation on the chart would also indicate the beginning of the rebound and increases. The target may be the nearest supply zone 0.7000.
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