Technical picture ahead of RBA minutes
AUD/USD:
Despite a promising upward gap at the open off daily support at 0.6866, the Australian dollar concluded Monday weaker against its US counterpart, falling to a multi-month low of 0.6848. Amid fresh headlines suggesting India is to impose tariffs on US goods, alongside fears trade tension will continue to hurt the Chinese economy, the AUD/USD registered its fourth consecutive daily loss.
From the weekly timeframe, we can see the unit trading within striking distance of notable support pencilled in at 0.6828, a level offering history as far back as mid-2003. The setting on the daily timeframe saw price action dethrone local support at 0.6866 yesterday (now acting resistance), consequently exposing the aforementioned weekly support.
With daily support now likely to serve as resistance at 0.6866, the H4 candles, according to our technical reading, see limited support until crossing paths with the 0.68 handle.
Areas of consideration:
Focus remains on the weekly support level at 0.6828 for a possible countertrend trade.
Should 0.6828 enter the fight, as highlighted in Monday’s report, and produce a notable H4 bullish candlestick configuration – think hammer formation of bullish engulfing pattern – the odds of price developing at least a healthy bounce is high, targeting the underside of 0.6866 as the initial upside objective (entry and risk elements can be determined according to the bullish candlestick’s structure).
However, do be aware that in less than an hour we have potentially hard-hitting news out of Australia in the form of the Reserve Bank of Australia (RBA) minutes of its latest policy meeting.
Today’s data points: Australia Monetary Policy Meeting Minutes and HPI q/q; US Building Permits; US Housing Starts.
Despite a promising upward gap at the open off daily support at 0.6866, the Australian dollar concluded Monday weaker against its US counterpart, falling to a multi-month low of 0.6848. Amid fresh headlines suggesting India is to impose tariffs on US goods, alongside fears trade tension will continue to hurt the Chinese economy, the AUD/USD registered its fourth consecutive daily loss.
From the weekly timeframe, we can see the unit trading within striking distance of notable support pencilled in at 0.6828, a level offering history as far back as mid-2003. The setting on the daily timeframe saw price action dethrone local support at 0.6866 yesterday (now acting resistance), consequently exposing the aforementioned weekly support.
With daily support now likely to serve as resistance at 0.6866, the H4 candles, according to our technical reading, see limited support until crossing paths with the 0.68 handle.
Areas of consideration:
Focus remains on the weekly support level at 0.6828 for a possible countertrend trade.
Should 0.6828 enter the fight, as highlighted in Monday’s report, and produce a notable H4 bullish candlestick configuration – think hammer formation of bullish engulfing pattern – the odds of price developing at least a healthy bounce is high, targeting the underside of 0.6866 as the initial upside objective (entry and risk elements can be determined according to the bullish candlestick’s structure).
However, do be aware that in less than an hour we have potentially hard-hitting news out of Australia in the form of the Reserve Bank of Australia (RBA) minutes of its latest policy meeting.
Today’s data points: Australia Monetary Policy Meeting Minutes and HPI q/q; US Building Permits; US Housing Starts.
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