08/11/22 Daily Currency Strength Analysis: AUDUSD- The Market Favours Risk Currencies

Tues 8th November 2022

Today, Our Daily Currency Strength Weakness Video will focus on:

• AUDUSD

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

AUDUSD- Currency Strength Indicator Favours Risk Currencies?

In today’s currency strength video we identified that the AUD has appeared as second strongest currency at S2 on both tables whilst the USD remains the weakest at W1. 

Looking at the weekly chart we can see that the price of AUDUSD is in a defined downward trend. This dominant trend could remain which means we may be looking for day trading opportunities over trend trading ones. 

On the daily chart ahead of price is a trendline resistance and horizontal resistance at 0.6525. For day traders this would be area to target for long opportunities. Trend traders may want to wait for the price to breach this level before looking for trend trading opportunities.

Technical Observations

• The USD is W1 and the AUD is S2 on the both currency strength indicator tables.
• Higher time frames show AUDUSD in a downward trend but currently rallying.
• The price is approaching key trendline and horizontal resistance at 0.6525.
• This gives day traders opportunity on a breakout move.
• Trend traders will need to wait for the price to trade through the resistance which will open the price up to a move to 0.6700.