AudUsd remained firm on Friday in heading up from the low of 0.7575, back above 0.7600 and on to a high of 0.7629, closing nearby.
The momentum indicators are now aligning to point higher ,and above Friday’s high would see sellers nearby at the trend high of 0.7635. Beyond here would find offers at 0.7645/50 and further gains could potentially test the strong descending trend resistance levels seen at 0.7695 and eventually at 0.7725.
On the downside, the initial bids will arrive at 0.7600 ahead of Friday’s low of 0.7575 although this seems unlikely to be seen today. If wrong, look for a run towards 0.7560 ahead of the 13 June low/200 DMA at 0.7521/25. This area would be strong if we were to see it, but a downside break would trigger some short term stops and may produce a trip back towards 0.7490/0.7500, below which could revisit 0.7465/70 and even 0.7445/50.
It now looks as though buying dips is the general idea but as we approach 0.7700, demand may begin to diminish and it would not really surprise if the long term triangle formation (weekly chart below) continued to dominate the price action.
Economic data highlights will include:
M: WBC Consumer Survey, New Motor Vehicle Sales (May), China House Price Index (May)
T: House Price Index (Q1), RBA Minutes
W: WBC Leading Economic Index
T:
F:
All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.