AUD/USD Technical Analysis
On the daily chart below, we can see how the blockbuster NFP report on last Friday gave the USD a big boost. The price though stalled at the trendline and the support in the 0.6900 area before bouncing back. That’s going to be a strong barrier for the USD. The RBA recently hiked interest rates further and signalled more to come as Australian inflation data surprisingly beat expectations the last time. You can feel again the market being afraid of inflation coming back and central banks being forced to hike more than projected.This is also what Fed members talked about in recent speeches, so the AUD/USD pair will be more even more sensitive to risk sentiment going forward. On the 4 hour chart below, we can see how the price bounced off of the support in the 0.6900 area and rallied towards the closest swing resistance at 0.6985. Sellers will have more conviction if the price fails ones again breaking out of that resistance and the blue short-term moving average falls below the red long-term moving average signalling a change in momentum to the downside. For now, it looks like we will need to wait for further economic data with the most important one being the US CPI coming next week. On the 1 hour chart below, we can see more clearly how the price is struggling breaking to the upside the 0.6984 resistance which has also the 38.2% Fibonacci retracement level as confluence. If the buyers manage to break out, the next resistance will be at 0.7042 where there’s also the 61.8% Fibonacci level. Right now, the moving averages are indicating un upward momentum. So, it would be better to wait for the moving averages to turn south before considering shorts. This article was written by ForexLive at www.forexlive.com.
On the daily chart below, we can see how the blockbuster NFP report on last Friday gave the USD a big boost. The price though stalled at the trendline and the support in the 0.6900 area before bouncing back.
That’s going to be a strong barrier for the USD. The RBA recently hiked interest rates further and signalled more to come as Australian inflation data surprisingly beat expectations the last time.
You can feel again the market being afraid of inflation coming back and central banks being forced to hike more than projected.
This is also what Fed members talked about in recent speeches, so the AUD/USD pair will be more even more sensitive to risk sentiment going forward.
On the 4 hour chart below, we can see how the price bounced off of the support in the 0.6900 area and rallied towards the closest swing resistance at 0.6985.
Sellers will have more conviction if the price fails ones again breaking out of that resistance and the blue short-term moving average falls below the red long-term moving average signalling a change in momentum to the downside.
For now, it looks like we will need to wait for further economic data with the most important one being the US CPI coming next week.
On the 1 hour chart below, we can see more clearly how the price is struggling breaking to the upside the 0.6984 resistance which has also the 38.2% Fibonacci retracement level as confluence.
If the buyers manage to break out, the next resistance will be at 0.7042 where there’s also the 61.8% Fibonacci level. Right now, the moving averages are indicating un upward momentum. So, it would be better to wait for the moving averages to turn south before considering shorts.
This article was written by ForexLive at www.forexlive.com.
