Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
News
- 【XM Group】--SP 500 Forecast: Takes Off for Monday Session
- 【XM Decision Analysis】--EUR/USD Analysis: Selling Pressures May Persist in the C
- 【XM Forex】--S&P 500 Monthly Forecast: January 2025
- 【XM Market Review】--USD/CAD Forecast: USD Resilient Against CAD
- 【XM Market Review】--EUR/USD Forex Signal: Euro Crashes Amid US and EU Divergence
market news
There are obvious signs of bulls controlling the market, and the Australian dollar may usher in a trendy market against the US dollar?
Wonderful Introduction:
Youth is the nectar made of the blood of will and the sweat of hard work - the fragrance over time; youth is the rainbow woven with endless hope and immortal yearning - gorgeous and brilliant; youth is a wall built with eternal persistence and tenacity - as solid as a soup.
Hello everyone, today XM Forex will bring you "[XM Forex Market Review]: There are obvious signs of bulls controlling the market, may the Australian dollar be in a trend against the US dollar?" Hope it will be helpful to you! The original content is as follows:
On Wednesday (July 23), the Australian dollar continued to rebound, rising for the fourth consecutive trading day. The exchange rate further rose to the 0.6580 area during the European period, setting a new high in more than a week. On the news front, US President Trump announced a major trade agreement with Japan, boosting overall risk sentiment in the market and supporting the risk-sensitive currency Australian dollar.
The US dollar continues to be under pressure. The current market uncertainty about the independence of the Federal Reserve and the differences on the pace of interest rate cuts have made the US dollar maintain a weak consolidation pattern. Although the RBA expressed a dovish tendency in the minutes of the July meeting and expected a further rate cut, the overall exchange rate tendency continued to fluctuate and rise in the context of the weak US dollar.
Fundamentals
The recent market risk sentiment has increased significantly, mainly due to Trump's high-profile announcement of reaching a "major agreement" with Japan, strengthening the market's expectations for an improvement in the global trade pattern and thus supporting the performance of risk assets. The Australian dollar, as a typical risk currency, also benefited from it. At the same time, the US dollar is under multiple pressures: on the one hand, the Trump administration continues to pressure the Federal Reserve to cut interest rates, and even openly question Chairman Powell's ability, resulting in a decline in the attractiveness of the US dollar's safe-haven aid; on the other hand, Treasury Secretary Becent called for a xm-links.comprehensive review of the Federal Reserve to further weaken the market's confidence in the Federal Reserve's policy.
In addition, although the RBA expressed its position of "inclining to further rate cuts" in the minutes of the meeting and pointed out that the Australian labor market is weak, the current market interpretation is relatively neutral. The market has gradually included the "August interest rate cut" in its pricing, and may no longer constitute new negative news in the short term.
Technical aspects:/p>
Daily chart shows that the Australian dollar-USD exchange rate is between the middle and upper rails of the Bollinger Band, and the current quotation has approached the previous high of 0.6594. The Bollinger band exhibits a mild open pattern, with the Bollinger middle rail (0.6530) moving upward, suggesting that the trend is tilting towards the bullish direction.
From the K-line pattern, the exchange rate has been positive for four consecutive times, and the positive line entity has gradually expanded, and the volume and price coordination is good, indicating that short-term bullish control is more obvious. Analysts believe that the previous lows of 0.6454 and 0.6372 form a key support belt, and maintaining it above this range is conducive to the continuation of the subsequent rebound structure.
In terms of MACD indicators, the DIFF line is slightly higher than the DEA line, and the bar chart gradually turns positive. Although there has not yet been a golden cross, the short-term momentum has turned from idle to long. The RSI indicator rose to 58.14, and there is still room for the overbought area and no overheating signal was displayed.
Analysis xm-links.comprehensively believes that the technical side is relatively large. If the resistance of 0.6594 is effectively broken through, it may be expected to test the Bollinger upper rail 0.6610. After further breakthrough, it will point to the 0.6660 area; the support below focuses on the Bollinger middle rail 0.6530, and if the loss is made, it may return to the oscillation range.
Prevention of market sentiment:
The current market sentiment is generally optimistic. News of Trump's agreement with Japan has sparked optimism about the global economic outlook, which has stimulated demand for risky assets and led to strengthening xm-links.commodity currencies such as the Australian dollar. In addition, the US dollar has recently fallen into a downturn due to concerns about political interference in the Federal Reserve's policy. The market is full of uncertainty about the pace of the Federal Reserve's interest rate cut, which has weakened the bulls' willingness to hedge.
But it is worth noting that although bulls dominate the market in the short term, the RBA's dovish expectations still exist, coupled with the xm-links.coming key economic data (such as the Australian and American PMI), which may trigger an expansion of volatility. Therefore, although market sentiment is biased towards bulls, there are still unstable factors.
The above content is all about "[XM Foreign Exchange Market Review]: There are obvious signs of long-term control, and the Australian dollar against the US dollar may be in a trend market?". It is carefully xm-links.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
After doing something, there will always be experience and lessons. In order to facilitate future work, we must analyze, study, summarize and concentrate the experience and lessons of previous work, and raise it to the theoretical level to understand it.
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here