DBS Private Bank 1/12: #AUDUSD: Upside pressure persists on bullish flag pattern
Chart 1 (weekly chart) shows without a moving average convergence divergence negative decline, #AUD merely pushed lower to 0.7564 but clung tightly to a major trendline support that connects from
Chart 1 (weekly chart) shows without a moving average convergence divergence negative decline, #AUD merely pushed lower to 0.7564 but clung tightly to a major trendline support that connects from
DBS Bank 2/12: the major 0.5510 lows through last November’s 0.6991 lows. A bullish flag is being formed, which implies AUD retains its underlying bullish tone.
Chart 2 takes a look at #AUD’s supporting cast. China’s iron ore inventory (in red), together with iron ore prices
Chart 2 takes a look at #AUD’s supporting cast. China’s iron ore inventory (in red), together with iron ore prices
DBS Bank 3/12: (in green; SGX TSI Iron Ore CFR China Index prices), remain in good stead with coal prices (in blue; Newcastle coal prices). #AUD is holding up well as its terms of trade remain buoyant as Australia’s trade squabble has not seen China inhibit iron ore & LNG imports
DBS 4/12: pivotal SGX TSI Iron Prices saw a recent 20.2% decline to last Dec lows, but has since responded higher, cushioning #AUD’s fall post #RBA.
China’s iron ore inventory isn't anywhere close to its prior March-Apr peaks, which saw #AUD seed a sharp decline then from 0.8136
China’s iron ore inventory isn't anywhere close to its prior March-Apr peaks, which saw #AUD seed a sharp decline then from 0.8136
DBS Private Bank 5/12: On Chart 3, it is clear we still have a favourable (bullish) cloud pattern (in purple). #AUD merely tested the top fringe of the cloud around 0.7585, & for AUD to change its bias to a negative trend, the level to beat remains the base of the cloud at 0.7366
DBS Private Bank 6/12: In short, unless #AUD can huddle under the100-day moving average (dma) at 0.7407 and 0.7366, it retains a bullish bias.
Chart 4 provides our navigation path (daily chart). 0.5510, in our opinion (which we reiterated several times last year),
Chart 4 provides our navigation path (daily chart). 0.5510, in our opinion (which we reiterated several times last year),
DBS Private Bank 7/12: is a major significant low that is likely to hold for years to come. #AUD rallied in five legs 1-2-3-4-5 higher to post 0.7414 last Sept, before donning a minor wxy correction. But here is the deal – it provided a deceptive consolidation that eventually
DBS Private Bank 8/12: launched a triple bottom catapult, which is currently fuelling the next five legs higher 1-2-3 4-5.
The recent decline that the RBA policy meeting likely sprouted the penultimate 4 price leg.
The recent decline that the RBA policy meeting likely sprouted the penultimate 4 price leg.
DBS Private Bank 9/12: The recent bounce shows there is accumulation gathering just around the 55-dma (currently at 0.7603), and without significant pressure to force a decline in the piping, #AUD looks poised to gather more ground to the topside.
DBS Private Bank 10/12: A break over resistance markers at 0.7805 (Donchian Channel top) and 0.7816 would intensify a continuation of the rally that could possibly eye a 223.6% price extension of the prior triple bottom at 0.7988 (on a break of 0.7917).
DBS Private Bank 11/12: At such levels, one should expect #AUD’s rally from last November to cool and contour a proper correction as price leg 5 is probably done and dusted then.
DBS Private Bank 12/12: #AUDUSD: Tactically, we go long at 0.7655 with an add-on at 0.7585, as we harp on the bullish flag build-up. Invalidate on a decline under 0.7420, while looking to harvest at 0.7910. $AUDUSD #AUD #Australia #Aussie #forex
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