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AUDUSD Reaches 0.7030 Target as DXY Tests Confluence of Support
On January 9th, I wrote about an AUDUSD breakout with a target of 0.7030. After a few days of retesting the 0.6880 area as new support, we got our 160-pip move and a retest of 0.7030 today. This morning’s Producer Price Index (PPI) numbers again showed that inflation is slowing, which is theoretically bullish for risk assets. But as mentioned recently, the US Dollar Index (DXY) is giving risk markets reason for concern. The 101.30 DXY level is a confluence of support that dates back to late 2016. A US dollar bounce from there this week would likely put risk assets under pressure, which could trigger an AUDUSD ... (full story)