Investors have turned risk-averse ahead of the US PCE Price Index data.
The formation of an Ascending Triangle indicates sheer volatility contraction.
The RSI (14) has shifted into the 40.00-60.. range, which indicates an exhaustion in the upside momentum.
The AUD/USD pair has corrected sharply to near 0.7100 in the early European session. The Aussie asset has sensed selling pressure as investors have turned risk averse ahead of the release of the United States Personal Consumption Expenditure (PCE) Price Index data. Meanwhile, an improvement in the safe-haven’s appeal has strengthened the US Dollar Index (DXY).
S&P500 futures has demonstrated a sell-off as further interest rate hikes by the Federal Reserve (Fed) might accelerate recession fears. The 10-year US Treasury yields has added gains further to near 3.53%.
On an hourly scale, AUD/USD is oscillating in an Ascending Triangle chart pattern that indicates a sheer contraction in volatility. The upward-sloping trendline of the chart pattern is plotted from January 25 average price at 0.7061 while the horizontal resistance is placed from January 26 high around 0.7140.
The 20-period Exponential Moving Average (EMA) at 0.7110 has overlapped the asset, which indicates a rangebound acution profile.
It is observed that the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bullish range of 60.00-80.00, which conveys that the bullish momentum has faded now.
Should the asset breaks above January 26 high at 0.7142, Aussie asset will deliver a breakout the Ascending Triangle, which will drive the major towards the round-level resistance of 0.7200. A breach of the latter will expose the asset for more upside toward June 3 high at 0.7283.
On the contrary, a downside move below December 29 low at 0.6710 will drag the major further toward December 22 low at 0.6650 followed by November 21 low at 0.6585.
AUD/USD hourly chart
|Today last price||0.7111|
|Today Daily Change||-0.0005|
|Today Daily Change %||-0.07|
|Today daily open||0.7116|
|Previous Daily High||0.7143|
|Previous Daily Low||0.7079|
|Previous Weekly High||0.7064|
|Previous Weekly Low||0.6872|
|Previous Monthly High||0.6893|
|Previous Monthly Low||0.6629|
|Daily Fibonacci 38.2%||0.7118|
|Daily Fibonacci 61.8%||0.7103|
|Daily Pivot Point S1||0.7083|
|Daily Pivot Point S2||0.705|
|Daily Pivot Point S3||0.702|
|Daily Pivot Point R1||0.7146|
|Daily Pivot Point R2||0.7176|
|Daily Pivot Point R3||0.7209|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.