Australian dollar strengthens along with yuan
Technical Analysis Summary XAU AUD: Sell
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Sell |
Chart Analysis
On the daily timeframe, XAUAUD: D1 is correcting down from the historical high. It broke down the downtrend support line and is below the 200-day moving average at the moment. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if XAUAUD falls below the last lower fractal: 2540. This level can be used as an entry point. We can place a stop loss above the last upper fractal and Parabolic signal: 2700. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (2700) without activating the order (2540), it is recommended to delete the order: the market is undergoing internal changes not taken into account.
Fundamental Analysis of -
In this review, we propose to consider the XAUAUD Personal Composite Instrument (PCI). It reflects the price action of gold against the Australian dollar. Will the XAUAUD continue to decline?
The downward movement shows the decline in gold prices and the strengthening of the Australian dollar. As we mentioned in the previous review, the development of vaccines against Covid-19 may reduce global risks and the gold demand. Over the past 2 years, gold has almost doubled in price. This led to the reduction of its demand in the jewelry industry, as jewelry buyers from developing countries have not yet adapted to such high prices. Some investors even believe that if the coronavirus vaccination is successful, the American economy may not need additional funds to recover from the pandemic, or their volume may be cut. Unlike gold, the Australian dollar has the potential to benefit significantly from the rapid end of the Covid-19 pandemic. Like the Australian economy, the Australian dollar is also supported by increased global trade activity and strong Chinese statistics, as China is the main buyer of Australian commodities. In October, the Chinese macroeconomic data was positive. Industrial production and retail sales increased, while unemployment fell.