AUD/USD: Area of high interest from 0.7150 approached

Cycles & Levels: The chart in the weekly remains in a firm down-cycle but the breakout of the 2018 descending trendline does raise red flags of a longer-term bottom found ahead of 0.70. On the daily, we are getting into close proximity of a key area of support at 0.7150/55, where I am expecting much more interest to be a buyer in line with the current up-cycle. On the hourly, I am closely monitoring the test of an ascending trendline (3rd touch) with 0.7150 and 0.7120 the key static supports the market will use as a reference. From a structural view, the clearance off 0.7185 strengthens the bearish structure, but remember that it’s in contradiction with the daily.

Correlations & Volumes: Correlations paint a gloomy picture for the Aussie, as all the related market valuation are currently falling (gold, yuan, yield spread, 1/dxy). Monday’s POC can be found at 0.72, above the close of the price by5pmNY, which as in the case of the rest of FX majors, has seen no profit-taking.