The Australian Dollar has recently been on a strong bullish march following slipping sentiment in the US Dollar. However, some concerning fundamental factors are impact the pair in the short term and the rally has inevitably stalled. Subsequently, the question remains as to which way for the little Aussie battler in the short term.
Taking a look at the Aussie Dollar’s technical indicators appears to confirm an intraday neutral bias. Despite some sharp selling pressures following last week’s RBA rate decision, the pair has managed to keep the key 0.7476 support level intact. However, the pair is still facing some sharp divergence in the 4-hour MACD which could be signalling a short term top starting to form.
On the upside, the pair’s daily RSI oscillator is still within neutral territory which means that the recent consolidation has given the indicator some room to move. However, the upside might be relatively limited with a key Fibonacci retracement level at 0.7849 likely to cap any further upside moves.
A downside move would likely face some relatively strong support from the bottom of the swing candle from late march, at 0.7476. On extension, the next relatively strong reversal zone is the 55 Day EMA which currently ranges around the 0.7402 mark. Subsequently, there is also plenty of reason to believe that a bearish move would like reverse close to the key 74 cent handle.
Ultimately, given the lack of a strong trend, the pair’s technical indicators lend themselves to wards a neutral intraday bias. However, the long term view still presents a bearish contention given that price action is still contained within a long term falling channel. Subsequently, any moves within this channel are likely to be short term corrective in nature until a confirmed break of the trend occurs.
Risk Warning: Any form of trading or investment carries a high level of risk to your capital and you should only trade with money you can afford to lose. The information and strategies contained herein may not be suitable for all investors, so please ensure that you fully understand the risks involved and you are advised to seek independent advice from a registered financial advisor. The advice on this website is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. The information in this article is not intended for residents of New Zealand and use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Knight Review is not a registered financial advisor and in no way intends to provide specific advice to you in any form whatsoever and provide no financial products or services for sale. As always, please take the time to consult with a registered financial advisor in your jurisdiction for a consideration of your specific circumstances.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.