AUD/USD: Eyeing up a 125 PIP move to the upside.
Hello Traders and welcome back to EverythingFX!
The Australian Dollar is currently trading at 0.67859 against the US Dollar during today's London session.
Firstly, Let's take a look at what the higher timeframes are telling us. July closed fairly bearish, engulfing the whole prior month, showing us that there had been a shift in momentum. Dropping down to the weekly timeframe we can see we had two consecutive bearish weeks following through after rejecting off of our monthly resistance at 0.70500. On the current week, however, we have seen a massive spike down to our next level of support at 0.67000.
For a clearer picture, let's drop down to the daily timeframe where can see the price has a double Doji representing a slow down in and around the level of support. Dropping lower to a 4-hour there has been a slight conversion of the moving averages and there could potentially be a small intra-day opportunity coming up with our next level of resistance lining up at 0.68750. Upon a re-test of a minor level drawn on in the screenshot above at 0.67500, we could see a push to the upside of 125 PIPs. What would invalidate this right now would be a daily break and closure of 0.67000.
Fundamentally, we have seen this pair get absolutely battered by overall risk sentiment as mentioned in our market news section. The biggest thing to watch going forward would have to be RBA Interest Rate decision once more as the market is anticipating a further cut but we will be monitoring data up until the next meeting minutes on the 20th of August for further insight into where they heading next. We remain on the lookout for the US Fed as well as the market is expecting a second cut from them potentially at the next meeting! Stay tuned to our market news section for further updates!