AUDUSD - favorite setup of the week

The AUDUSD is showing the most interesting setup of the week.

After the fake breakout to the downside, the shorts got squeezed a lot. The Aussie traded back into demand where it found sellers immediately.

The question for the Aussie is: how does China and Crude influence the AUDUSD? Falling Oil and depreciating Chinese markets weighed heavily on the AUD which led to the sell-off. Recently, Oil found support and China managed to control the bears.

Shorting the AUDUSD is not the best reward:risk trade if China and Oil keep improving. We remain neutral for now and wait for confirmation from China and Oil before making trading decisions on the AUDUSD.