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Basic Overview
The US dollar started the week on a weak note at the beginning of the new month. Last week’s strength may have been influenced by end-of-quarter flows rather than fundamentally, as economic data did not change interest rate expectations. However, the data is expected to continue to support risk sentiment amid a recovery in growth without inflationary pressures.
On the other hand, the Australian dollar should be preferred in such an environment because it is also supported by a slightly more hawkish move. RBA. Last week, the Australian dollar got a boost from another currency Hot Monthly CPI The report raised the possibility of an occurrence High ratedespite of Hauser of the Reserve Bank of Australia Pour some cold water on the outlook as he prefers to keep interest rates steady for longer.
Technical Analysis of AUDUSD – Daily Time Frame
Daily AUDUSD currency pair
On the daily chart, we can see that AUDUSD is approaching the key resistance The area is around the 0.6713 level. All other things being equal, the fundamentals are in place for an upside breakout. This is what buyers will want to see to increase bullish bets to the 0.6870 level after that.
On the other hand, sellers are likely to step in around the 0.6713 resistance area with risks defined above it in preparation for another drop to the range bottom at 0.66.
AUDUSD Technical Analysis – 4-hour timeframe
AUDUSD 4 hours
On the 4-hour chart, we can more clearly see the price action in a limited range between the 0.67 resistance and the 0.66 support. 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.
Technical Analysis of AUDUSD – 1 Hour Time Frame
Technical analysis of AUDUSD pair
On the 1-hour chart, we can see that the recent price action has formed another small range between the 0.6625 support and 0.6680 resistance. From a risk management perspective, buyers will certainly have a better risk to reward setup around support, while sellers will want to rely on resistance.
However, if the price remains above the resistance level of 0.6680, buyers should remain in control and extend the rise to the resistance level of 0.6713. The red lines mark Average daily range For the day.
Upcoming incentives
this week Full of important events. Today we start with the release of the US ISM Manufacturing PMI. Tomorrow, we have US jobs and Fed Chair Powell speaking. On Wednesday, we will receive US ADP data, US unemployment claims, US ISM services PMI, and FOMC meeting minutes. Thursday will be an official holiday in the United States on the occasion of Independence Day. Finally, on Friday, we conclude the week with the US NFP report.
