AUD/USD Likely to Make A Bearish Break Below the Triangle Soon
AUD/USD has been declining for a few months now, owing mostly to a stronger US dollar which has been bullish as most central banks turn soft while markets are still contemplating a last rate hike by the FED in November or December. But the global concerns have also been driving traders away from risk assets, such as the considerable challenges that China’s economy has faced this year across a variety of industries and the conflict in Gaza.
Following a decline in Chinese Caixin services and manufacturing earlier this month, which sent AUD/USD diving below 0.63, this pair rebounded but has yet to achieve new highs, indicating that the trend remains negative although slowing. Last week we saw several attempts from buyers to reverse the price higher, but they failed to break above the resistance zone below 0.64 and now it seems the price is reversing back down.
AUD/USD has been bouncing in a triangle, with the highs getting lower, while a support zone has formed below 0.63. So, the trend remains bearish for this pair, and will likely continue to slip further, once the bottom of the triangle is broken. Today we had the retail sales for September as well.
Retail Sales for September from Australia
- September retail sales
AUD/USD Live Chart
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