Analysis

AUDUSD is buying and selling above and under the swing highs from final two weeks

Trades  above and under October 1 and October 6 excessive at zero.72084

The October 1 and October 6 excessive worth for the AUDUSD reached zero.72084.

Trades  above and below October 1 and October 6 high at 0.72084

On Friday, that ceiling was damaged to the upside with the worth extending as much as zero.72423.  

At the moment, the worth is wandering decrease in uneven buying and selling. The low worth reached zero.72019 within the course of. That was under the ceiling at zero.72084. 

The worth shifting again to the outdated ceiling (and under it) exhibits that the market is uncertain as to the following directional transfer.  In a means, the break above the ceiling failed. 

Nonetheless, the lack to get under the pure assist at zero.7200 degree, helps to maintain the consumers in play. A transfer again under the zero.72084 degree and the zero.7200 degree must be sufficient to kick begin the draw back additional. Failure to try this and I’ll give the advantage of the doubt nonetheless to the consumers.

As Adam identified in early publish, the worth motion within the pair is incongruent with the motion seen within the inventory market. With the key indices up sharply, one would anticipate to see “danger on” forex pairs just like the AUDUSD shifting larger. Nonetheless that isn’t the case immediately with the decline within the pair.  

Is the forex market telling us one thing?  Are the shares going a bit too far, too quick?

PS The main indices are off there excessive ranges. The NASDAQ and index which reached a excessive worth of 11965.53 is at the moment buying and selling at 11886.27. That’s nonetheless up 306 factors or 2.65% on the day, however off the highs. The S&P index reached a excessive of 3945.85. It’s at the moment buying and selling at 3537.60. That too remains to be up 60 factors or 1.74%.  Up to now, there may be not a lot of a response to the inventory declines as effectively. 

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