The Australian dollar eased the excitement on Friday after optimism over the first-stage trade deal between the United States and China faded away. The risk-aversion sentiment increased over the weekend before the two countries seemed to be increasingly taking steps to avoid further escalation of tariffs. The United States canceled a tax increase on China over the weekend, agreeing to cut taxes on about $ 120 billion of Chinese goods to half as much as 7.5 percent. In return, China promised President Donald Trump from now on to increase purchases of agricultural products by about $ 50 billion each year. The agreement is expected to be signed early next month. Concerns such as forced technology transfer and Chinese intellectual property theft were not discussed and Trump even left open the discussion of phase two after 2020.
This week's Aussie will take note of China's retail and industrial production data. Recently, results from the world's second largest economy tend to outperform expectations.
Similar factors could push AUD higher as the market tends to support China's easing policy. Risk appetite may also improve if positive data helps to ease concerns about the slowing economy.
The downtrend on the weekly chart has been broken, signaling the end of a developing downtrend. However, after hitting the Flipzone 0.6925 threshold, the pair AUDUSD has retreated back to the trendline, creating a candle similar to Shooting Star on the daily chart. This zone is also the highest peak of AUDUSD price in the last 4 and a half months. In addition, the Demand zone 0.683 – 0.679 is the area promoting the weekly trendline break. It is likely that under the current downward pressure, AUD may fall to Demand on the day before further price action.
Stop loss 0.679
Profit taking 0.704
Main trend: UP
Recommendation: This is forex Trading Idea only. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.
Author: Nguyen Chi Thanh
Posts same category
Analyze EURUSD, GBPUSD and Gold week from December 9 to December 14, 2019
Analyze EURUSD, GBPUSD and Gold week from December 2 to December 6, 2019
Analyze EURUSD, GBPUSD and Gold week from November 25 to November 29, 2019
Analyze EURUSD, GBPUSD and Gold week from November 18 to November 22
Analyze EURUSD, GBPUSD and Gold week from November 11 to November 15, 2019
Analyze EURUSD, GBPUSD and Gold week from November 4 to November 8, 2019
Analysis of EURUSD, GBPUSD and Gold on October 28 to November 1, 2019
Analysis of EURUSD, GBPUSD and Gold for the week of October 21 to October 25, 2019
Analysis of EURUSD, GBPUSD and Gold for the week of October 14 to October 18, 2019
Analyze EURUSD, GBPUSD and EURGBP from October 7 to October 11, 2019
Analysis of Gold and Silver on October 7 to October 11, 2019
Gold and Silver Analysis week 30/9 to 4/10
Analyze EURUSD, GBPUSD and EURGBP for the week from 9/30 to 4/10
Gold trading strategy on September 26, 2019