Is AUD/USD Due for a Reversal After its Biggest Decline in Years?
With Tuesday's close, AUDUSD has dropped for seven consecutive days - the longest lasting bearish move in years. Alone, momentum on this more than 400 pip move is remarkable; but it is all the more extraordinary when we consider that this 'high yield' carry trade pair has tipped into this tailspin at the same time that the benchmark risk measure S&P 500 exploded to yet another record high at 1,650. Once again, we are faced with the distortions caused by an exceptionally strong US dollar. Yet, is it the greenback that is disconnected or the stimulus-supported equity indexes? We discuss this theme and the trade opportunities it presents in today's video. Market conditions change, and our strategy should reflect those changes.
We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.