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AUDUSD: The Long Strategy Unchanged, and Try to Go Long After the Callback

Forex MarketCentral Bank Policy Trends
Summary:

Uncertainty about the trend of AUDUSD in the short term still remains. However, the Fed has signaled a slowdown in the pace of interest rate hikes. Therefore, the dollar tends to go weak, while the Australian dollar will turn upward in the medium to long term.

Buy AUDUSD
End Time
CLOSED

0.66755

ENTRY PRICE

0.69000

TGT PRICE

0.65700

SL PRICE

0.71059 -0.00066 -0.09%

493

Points

Profit

0.65700

SL PRICE

0.67248

CLOSING

0.66755

ENTRY PRICE

0.69000

TGT PRICE

Fundamentals

A series of recent positive US economic data has prompted the possibility of further interest rate hikes by the Fed. And the constant rally of the US dollar has weighed on the Australian dollar. At the same time, Australia's latest third-quarter GDP growth recorded 5.9% year-on-year, lower than the expected 6.2%, and the growth rate month-on-month was also inferior to the previous value, suggesting a slowdown in economic growth. In addition, affected by repeated outbreaks of the pandemic, China's import and export growth rate sild in November, which further struck the Australian dollar.
However, the RBA has raised interest rates eight times in a row since May this year. As inflation remains high, the RBA also expressed that it did not presuppose a course for tightening policy, indicating a continuation of interest rate hikes. Besides, restrictions of the pandemic in China have been gradually liberalized, which may be conducive to trading between China and Australia. For industrial metals, several metals including iron ore and copper are attempting to stabilize and bounce back recently, which will push the AUDUSD to the higher upside.
In the short term, whether the dollar can fully rebound is the key to the recent trend of the Australian dollar. There is a high probability that the Fed will slow down the pace of rate hikes to 50 BPs in December. Divisions in the Fed about these decisions still remain, adding to the uncertainty about the direction of the AUDUSD.

Technical Analysis

AUDUSD: The Long Strategy Unchanged, and Try to Go Long After the Callback_1Trading at the daily chart, AUDUSD has bottomed out since November, and the upward trend has basically been established. Besides, the short-term rally has moderated and is oscillating roughly in a parallel channel. During the pullback around the lower edge of the channel, AUDUSD has gained some support at present. If it can hold firmly and cease the decline, it may retrace to the rally. And the market is expected to keep surging to around 0.6900. 
It is recommended to go long at lows. And you can try to take a long position when the price retrace to around 0.6675. The target is set above the pressure level around 0.6900 and the stop loss is set below 0.6600.

Trading Recommendations

Trading Direction: Long
Entry Price: 0.6680
Target Price: 0.6900
Stop Loss: 0.6570
Support: 0.6600/0.6675
Resistance: 0.6900/0.6840
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

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7 years of stock market, foreign exchange, precious metal and other trading and analysis experience, based on fundamental, technical support, biased towards the top-down transaction logic, focusing on macro cycle and risk control, multi-purpose supply and demand theoretical prediction price Changes, balances the impact of transactions, chips distribution and market sentiment, and steady.

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