AUD/USD outlook: Aussie is consolidating under new 15-mth high, bulls look for 0.72+ extension

Slobodan Drvenica Windsor Brokers

AUD/USD

The Australian dollar hit the highest since Apr 2019 on Wednesday, in extension of Tuesday's 1.6% advance (the biggest one-day gain since 1 Jun).
Strong bullish signal was generated on Tuesday's close above 0.7064 (2020 high) and probe above 0.7132 (Fibo 61.8% larger 0.81350.5509 fall).
The advance was underpinned by rising equities and commodities that further boosted strong risk sentiment in the market.
Partial profit-taking before final break through 0.7132 pivot limits the advance for now, with dips expected to provide fresh buying opportunities, while holding above pivotal support at 0.7000 (psychological level reinforced by rising 10DMA).
Close above 0.7132 would provide fresh bullish signal for extension towards 0.7205 (17 Apr 2019 high) and 0.7262 (200WMA).

Res: 0.7132; 0.7167; 0.7205; 0.7262
Sup: 0.7100; 0.7064; 0.7018; 0.7000

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.7319
2. R2 0.7233
3. R1 0.7181
PP 0.7095
1. S1 0.7043
2. S2 0.6957
3. S3 0.6905

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.