AUDUSD trading at 3-weeks high as higher low pattern supports the cross to settle above 20DMA but bulls facing challenge at 0.7500 levels.

 Data Review:

  • The seasonally adjusted estimate for total construction work done fell 0.7% in the March quarter.
  • Moody’s downgrades China’s rating to A1 from Aa3 and changes outlook to stable from negative.

 

What’s on today?

RBA Debelle gives opening remarks followed by a panel discussion at the launch of the FX Global Code in London.

TECHNICAL VIEW

Early May, AUDUSD spotted with a triple bottom finds at 0.7328 rose as far as 0.7516 (May 23 high) facing resistance at set of multiple daily moving avergaes. The oil driven rebound helps the cross to rose nearly 190 pips from last early May’s low. Besides the U.S dollar weakness helping the A$ to erase monthly losses. Before retrace to 0.7440 (May 25th low) the price rejected at 100DEMA seems at 0.7520.

 

On the four hour chart, the cross has been forming a higher low pattern (four-hour chart) and erases the 2-month bearish channel. The price has a resistance zone remains between 0.7530 and 0.7560 above this 0.7590/0.7610 exits. Alternatively, potential support finds at 0.7440/0.7430 below this 0.7380 exists. On the weekly chart 100MA finds at 0.7400.

The daily RSI and oscillator appears bullish but the cross likely to remains in a tight trading range  between 0.7560-0.7440 levels. Ahead of the June RBA policy decision, A$ likely to cap at 0.76.

 

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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