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FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

AUD/USD is consolidating below daily cloud after forming the Three Black Crows pattern on the previous session's candle.

Close below 200-DMA on last Friday's trade has opened downside in the pair. Price action has slipped below the daily cloud and Chikou span is biased lower.

Momentum bearish, volatility high, scope for further drag lower. Major moving averages are trending lower. 

The risk-sensitive Australian Dollar slid sharply last week on the broad risk-off move that dragged most APAC currencies lower.

Growing hawkish shifts in Fed rate hike bets keep the US dollar buoyed, weighing on the pair. 

Focus now on Australia consumer price index (CPI) data for the first quarter due on Wednesday. CPI is expected at 4.6% on a year-over-year basis, up from 3.6% y/y in Q4. 

A better-than-expected print could strengthen RBA rate hike bets. As of Friday, cash rate futures were showing little chance for a rate hike at the May RBA meeting.

Major Support Levels: 0.7148 (200-week MA), 0.71

Major Resistance Levels: 0.7290 (200-DMA), 0.7350 (200H MA)

Summary: AUD/USD finds major support at 200-week MA at 0.7148. Technical bias for the pair is bearish. Watch out for decisive break below 200-week MA for major weakness. 
 

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