Australia Retail Sales Release ~ AUD Buying Strategy for November 2

◎ Strategy and Positions Held

Long Australian dollar outlook

Closed the AUD/USD short position.

AUD/USD ”0.7150” new long position opened at the bottom.

The stop is placed at breakeven. If the uptrend continues, we would not expect a break below the 61.8% Fibonacci level on the higher timeframe chart.

AUD/USD Timeframe chart

AUD/USD Daily chart

AUD/USD Weekly chart

◎ Outlook and Points of Interest

Until recentlythe U.S.-China relationship was a negative factor for selling, but yesterdaythere were statements from both sides suggesting a potential improvement in U.S.–China relations. Also, what was most concerning about the U.S.–China relationship was the economy.

Deterioration in U.S.–China relations → Chinese economy slowdown → Australian economy slowdown

was a factor contributing to AUD weakness. However, with the data released yesterday, Australia's trade balance turned positive. Chinese indicators also showed less downside than expected.

With fewer concerns, the AUD, which had been heavily sold, rebounded. It was bought back rapidly.

Is this rise merely a short-cover rally?

Or is the trend reversing,becoming an uptrend!?

I am watching closely.

First of all,I am focusing on whether the daily and weekly charts can decisively break above the parallel channel.