minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
AUDUSD fumbles, could it be saved? - Zeal Capital Market

AUDUSD fumbles, could it be saved?

23-06-2022 04:30

“Recession fear induce higher demand for safe-haven.”

AUD/USD pared its gains, touching fresh weekly low of 0.6880 after Fed Chair Jerome Powell’s testimony in front of US Senate. During the session, Powell reemphasized that they are committed to bring down inflation. While pace of tightening would depend on upcoming data, he also acknowledged for the first time that their action might tip US into a recession. Likewise, dire economic data from China has further dialled down market demand for Aussie dollar (an economy which is highly dependent on China).

Quick recap on AUDUSD

The pair failed to extend its recovery as it heads back to strong support level of 0.6850.

AUDUSD Weekly Technical Analysis

AUDUSD fumbles, could it be saved? - Zeal Capital Market

AUDUSD is skewed towards the downside as the pair remain subjected by the 200-MA line.

AUDUSD Daily Technical Analysis

AUDUSD fumbles, could it be saved? - Zeal Capital Market

From daily perspective, overall momentum is skewed towards the downside for near-term as MACD portrays increasing bearishness.

Trading Idea

AUDUSD fumbles, could it be saved? - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 0.6830

STOP LOSS: 0.6880

Target 1: 0.6775

Target 2: 0.6740

ZFX Analyst’s Comment

While the pair is skewed towards the downside in weekly perspective, it is worth noting that 0.6850 is the pair’s recent strong support. Thus, it is advisable to wait for a breakout before entering the market.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forexcommoditiesstock indices, and share CFDsOpen a trading account with min. USD 50 deposit and download our MT4 trading platform now!