The week in review on the AUDUSD

The Australian Dollar vs United States Dollar has had a week That has had some choppiness to it. A variety of news events have impacted price with much of the news related to the resurgence of COVID-19, particularly in the state of Florida within the United states and in the State of Victoria in Australia. Additionally, News from both the European Central Bank (ECB) and the Federal Reserve Bank (FED) on Stimulus measures from various members drew the eye of many.

As always, we have also seen several tweets from United States President Donald Trump. This week they have been related to trade (not unexpected), and his own tax returns for the past 8 years to be released as a ruling by the US supreme court, in connection with hush money.

AUDUSD H1 – the past weeks major news events

This week I am expecting influences on price to be related to the ever-increasing numbers of coronavirus around the globe, and the stimulus to support the economies in their respective nations.

I will also be looking for further meeting confirmations on changes to oil production from the Organization of the Petroleum Exporting Countries (OPEC) and the extra non-members.

International Trade will also take a focal point of mine, to maintain overall perspective on commodity prices and of course the impacts on FX markets.

AUDUSD H4 – a technical perspective

From a technical perspective the AUDUSD has been climbing since the major falls invoked by lockdown earlier in the year. The trendline on the chart above highlights in May where the trendline could be defined, coincidently a Double bottom pattern can be observed at this same point in price.

Double top and bottom patterns have been quite useful to me in the past few months as they have been occurring quiet regularly. Not always as a perfect looking pattern, but sometimes close enough that a minor amount of risk could be warranted to test the hypothesis that they will play out to move 100% of the expected.

Currently price is sitting very close to the long-term trend, and is trading within an area of support, suggesting a potential opportunity could be looming around the corner.

 Reprinted from fxstreet, the copyright all reserved by the original author.