AUD/USD Price Analysis: Bulls in charge pre-CPI, eye 0.7530/50
- AUD/USD is in focus as CPI looms, with bulls eyeing 0.7550 and the bears 0.7480.
- 0.7530 is a key options level that could give way if data comes in surprisingly hot.
Aussie CPI is out at the top of the hour and a preview of the event can be read here.
The following is a snapshot of the hourly chart and market structure to offer traders some insight as to how the price might react to the various scenarios laid out in the above analysis. 0.7530 is a key level according to options markets while a hotter than expected print could well see the price advance significantly higher on Reserve Bank Australia expectations.
AUD/USD 1 HR chart
The price is attempting a continuation of the longer-term bullish trend following a break of the prior dynamic trendline resistances. A positive CPI outcome will likely accelerate the bulls through the horizontal resistance that has so far anchored the pair below it near 0.7515 to at least 0.7550. If, on the other hand, we see a miss, the price will likely be forced back to test the old dynamic resistance as a counter-trendline near 0.7480.
AUD/USD, 1HR, a closer look
Positive CPI prospects:
Negative CPI prospects:
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
