The Aussie is marked by a high correlation with risk sentiment and commodity prices, and both factors are  weighing on the currency in the Monday session. Commodities such as copper and platinum are down significantly after Chinese Prime Minister Li said that China would implement “market tools” in order to keep commodity prices stable. Ordinarily, such a statement would not have such a strong impact on commodities, but thin liquidity due to a China holiday has resulted in a distorted move. At the same time as Australia’s police were reported to have arrested 235 people in Melbourne and 32 in Sydney at unsanctioned anti-lockdown rallies, the Australian government has revealed the road map out of lockdown. Australia's second-largest city will exit its coronavirus lockdown in late October if vaccine targets are met under an official roadmap released Sunday. About five million people in Melbourne have been under stay-at-home orders since August 5, the sixth lockdown they have endured so far during the Covid-19 pandemic.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

AUS200 (ASX200) has adapted to the impulsive bearish corrective stance precisely as published in our previous analysis on 26th August, anticipating that the overbought structure, roaming around the highest highs without a prolonged bearish correction on intraday charts, weekly time frame showing that the 5 wave pattern mightve been completed and observing the overbought condition based on relative strength index - AUS200 might lick 6929 i.e exponential moving average 50 before moving any higher. Also In daily time frame AUS200 had already initiated bearish correction and was in wave b most probably, indicating that wave c might provide us a closing at 7221 i.e strong support and consolidation zone from June and July. Currently the market is standing above our major support zone and is expected to continue its bullish trend from our 61.8% fibb level and exponential moving average 200 in daily time frame i.e 7094.

AUS200 (ASX200)

Sep 20 2021

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