The logic behind the AUDUSD

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The head and shoulders pattern has formed, with the US dollar maintaining its strength, indicating that bearish momentum is inevitable for the Australian dollar

The January core inflation data, including CPI , PPI and retail sales, all rebounded. Combined with the wage data in the non-agricultural employment report, it shows that US inflation has rebounded in stages. Although the downward trend of inflation remains unchanged, it will stimulate Fed extends rate hikes

The U.S. dollar rebounded strongly due to the rise in inflation and stimulated the central bank to raise interest rates. Worries prompted investors to cover the U.S. dollar, and the U.S. dollar regained its dominance in the short-term situation. At the same time, the strong US dollar depresses commodity prices, and the Australian dollar loses its power. Interest rate hike expectations are also extremely detrimental to the performance of U.S. stocks. After the end of the earnings season, U.S. stocks lack guidance, and rising inflation suppresses market liquidity and puts pressure on stock market sentiment.

In this situation, the short position of the Australian dollar has the best time, location, and harmony.

Technical head and shoulders The head and shoulders pattern is a high chance of winning in the technical trend, and it is one of the skills that must be mastered
Anmerkung
Snapshot
Due to the impact of the news, the market rebound has ended prematurely, but our target remains unchanged, with the price expected to reach 0.66500. We have successfully taken profits from gold and are confident in our position for AUDUSD.
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