AUDUSD - SUPPLY CHART - Daily Timeframe - 27.08.2024
📊The Weak US Dollar has made it easy for Price to spike up. We'll zoom in to this Supply chart to understand the existing supply levels that will help us find entry incase we will be shorting the Higher price.
📑The Main SUPPLY ZONE (Proximal line- 0.66423 & Distal line- 0.65976) faced stiff war and was broken by the Huge institutional Demand orders. Price is currently at the LTF Supply levels 0.67981 & 0.67094 respectively. The former will be a good Sell Entry.
⚠️If price breaks the LTF Supply level 0.67981, the next Supply level is at 0.69454 which is a TF Level
💡Aim to Trade the supply level 0.67981 - 0.65976 which is 2,005 Points. and to 0.64576 too
AUD/USD Bearish Themes
AUD Bearish
On-hold RBA consistent with some further Aussie downside
When China sneezes there is a good chance Australia will catch a cold
Further mistakes of applying old world style inflation fighting by the RBA are now being made
Aussie looks vulnerable if equities continue to take a downturn
Rumblings in the Aussie as Japanese investors bring their cash home
China and Ukraine to remain hotspots, sapping appetite for the aussie
Reserve Bank of Australia shifting to a less hawkish path
China’s zero-COVID-19 policy to hit the aussie
Australia does not look good
Growing interest rate advantage of the USD over the AUD
Australia to experience stubbornly high inflation and aggressive interest rate hiking cycle
The world's biggest port is closed, Australia is not immune
Australia aligns more closely with USA, sanctions against China not seen favourably
USD Bullish
Monetary policy dynamics should favor Dollar strength into the early part of next year
Softer growth outlook that will drive safe-haven flows towards the Dollar
Several factors support Dollar strength
Reasonably steady US economic trends and hawkish leaning Fed
Significant upgrades to for the next periods are set to keep US Dollar gains sustained
Markets featuring companies at the forefront of AI services could reinforce currency appreciation pressures
Slowdown in US inflation and growth is going to take a lot longer
When the dust settles, the Fed is set to continue raising rates
US to have permanently higher rates than elsewhere
Re-acceleration of inflation and its win over the Fed will continue to catch the market by surprise