Good afternoon team,
The USD was faced with a large amount of selling pressure yesterday and last night. The DXY index is now pushing up from a key resistance level as risk in the market is beginning to increase.
China and US tensions are increasing as China expands its scope of Hong Kong security legislation. Chinese media has reported the law was being revised to cover not just behaviour or acts that endanger national security, but also activities. The change will not only impact individuals but also organisations/companies.
With Trump suggesting he is going to respond before the week end, the AUDUSD appears to have created an opportunity from a technical and fundamental perspective.
AUDUSD – Technical Analysis
200 Moving Average has provided resistance previously over the past year. 0.6650 is a major resistance zone which was previous support.
We are now looking to enter a short position based on technical and fundamental backing.
Trade setup: SELL Market Execution – current price 0.6644, stop loss 0.6704 and take profit target 0.6500.
Stop loss: 60 pips
Take profit: 144 pips