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Basic overview
The US dollar remains supported by good economic data as we have seen recently from the dollar index US Purchasing Managers’ Indices Last Friday and American consumer confidence Yesterday’s report. Although this data keeps interest rate expectations stable around two cuts by the end of the year, it also supports risk-on sentiment amid a growth rebound. This could be a headwind for the dollar.
On the other hand, the Australian dollar has been supported recently by improving risk sentiment and a tendency to tighten monetary policy slightly
RBA Political decision. Today, the Australian got a boost from another decision. Hot monthly CPI The report raised the possibility of an occurrence High rate.
Technical Analysis of AUDUSD – Daily Time Frame
AUD/USD daily
On the daily chart, we can see that AUDUSD is now approaching the key level resistance The area is around the 0.6713 level. All other factors being equal, the fundamentals are in place for an upward breakout. This is what buyers will want to see to increase their bullish bets to the 0.6870 level next.
On the other hand, sellers are likely to intervene around the 0.6713 resistance area with a specific risk above it to prepare for a drop back to the bottom of the range at 0.66.
Technical Analysis of AUD/USD – 4-Hour Time Frame
Australian dollar against the dollar 4 hours
On the 4-hour chart, we can see more clearly the price action in a limited range between resistance 0.67 and support 0.66. These will be the key levels that the market will need to break to start a more sustainable trend. For now, we can continue to bounce until we get a clear breakout.
AUD/USD Technical Analysis – 1-Hour Time Frame
AUD/USD 1 hour
On the 1-hour chart, we can see that the price has retreated from the upper limit of Average daily range. We have good support around the 0.6672 level where we can also find support Confluence of two rivers
From 38.2% Fibonacci retracement level.
This is where we can expect buyers to step in with specific risks below the support level in order to continue the rally. On the other hand, sellers will want to see the price drop below the support level to start targeting a decline back to the 0.66 support level.
Upcoming stimuli
tomorrow We’ll get the latest US unemployment claims numbers, as we wrap up the week on Friday with the US Personal Consumption Expenditures report.
