AUD/USD: Are we ready to witness 0.7200?
Good Afternoon Traders and welcome back to EverythingFX.
The Australian Dollar is currently trading at 0.70547 against the US Dollar during today's London Session.
As explained in our previous article, we were anticipating a daily break and closure above 0.70500, which has successfully played out perfectly.
Remaining on a daily timeframe we can see we are approaching a trendline for the fourth time now, in and around 0.71000. With a fairly aggressive close yesterday I do anticipate a follow-through as well as a breach of this descending trendline. Upon a break, our next levels of resistance remain 0.72000/0.722500.
Dropping to a 4-hour, we can the market trending fairly nicely to the upside displaying minor pullbacks. The market is currently floating above 0.70500 level of support where resistance was previously found. Upon a break of 0.722500 as explained above, I do favour our next upside target to be our level of resistance at 0.74000, providing us with a decent swing opportunity of 350 PIPs from current trading price. What would invalidate my bias right now on this position would be a daily break and closure of our psychological level of 0.70000.
Fundamentally we have seen the Fed in the United States confirm that there will be an interest rate cut towards the end of the month sending the US Dollar lower, giving us the driving force on this pair. Eyes are peeled on the Fed now to see how whether it will be a 25bp cut or a 50bp cut as the odds of a 50bp cut has now risen to 70% as explained in our recent market news article. Do stay in tune with our Market news section as well as our Social Media Accounts for further updates.