AUDUSD: ABCD Pattern, RBA Rate
The RBA will release its rate statement in less than an hour.
The fresh new threat of the US-China trade war is very likely to be reflected in the statement which is most likely to be bad for its currency.
The aussie has plunged since the market opened this week.
While the price has retraced significantly, the gap has yet to be covered.
Therefore, if the price decides to cover the gap before the aussie continues to fall, an ABCD pattern will be completed at 0.7020 during/after the rate statement.
Should the gap be left opened, the price may attempt to break new low but unlikely to have a lasting effect.
The fresh new threat of the US-China trade war is very likely to be reflected in the statement which is most likely to be bad for its currency.
The aussie has plunged since the market opened this week.
While the price has retraced significantly, the gap has yet to be covered.
Therefore, if the price decides to cover the gap before the aussie continues to fall, an ABCD pattern will be completed at 0.7020 during/after the rate statement.
Should the gap be left opened, the price may attempt to break new low but unlikely to have a lasting effect.
The jump has also lead to a break of a falling trendline which has potentially change the short-term trend into a bullish one.