AUDUSD:A Breakout, but it will be a false one if CPI comes high.
Hey Traders, Above is a technical overview on AUDUSD and the most important zones to watch. AUDUSD was trading in a downtrend and successfully managed to break it out after NFP news and current market sentiments. Currently the dollar seems indecisive prior to Tuesday CPI data so we expect some short term continuation to the upsides until CPI release.
Above we have a couple of scenarios, a Valid breakout and a false breakout.
When it has more potentials to be a False Breakout?
If CPI data comes high that will signals to us more of a hawkish monetary policy which means more of Dollar strength as fed will continue tightening the balance sheet.
When it has more potentials to be a Valid Breakout?
If CPI data comes soft that's going to be a good news for the fed so we will more likely have a less restrictive monetary policy and a weak Dollar.
Technically we have noticed a breakout of the downtrend so we will be watching the price action around 0.667 zone.
Feel free to ask any question.
Trade safe, Joe.
Above we have a couple of scenarios, a Valid breakout and a false breakout.
When it has more potentials to be a False Breakout?
If CPI data comes high that will signals to us more of a hawkish monetary policy which means more of Dollar strength as fed will continue tightening the balance sheet.
When it has more potentials to be a Valid Breakout?
If CPI data comes soft that's going to be a good news for the fed so we will more likely have a less restrictive monetary policy and a weak Dollar.
Technically we have noticed a breakout of the downtrend so we will be watching the price action around 0.667 zone.
Feel free to ask any question.
Trade safe, Joe.
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