Currency Pair: AUD/USD
Chart: 60 Min Charts
Short-Term Bias: Bearish
Analysis
Expectations for a 100bp rate cut by the Reserve Bank of Australia is likely to weigh on the AUD/USD over the next 24 hours of trading, and the technical outlook favors a bearish forecast for the pair as risk trends continue to drive price action in the forex market. After falling to low of 0.6007 in October, the pair bounced back to reach a high of 0.7272 on 1/07, but the sharp retracement from the January high suggests that traders are bearish against the Australian dollar. Nevertheless, we saw the pair drop 150+pips at the end of last week to break below 0.6490-0.6500 (61.8% Fib), but the bullish divergence from the RSI suggests that a short-term retracement is underway, which is likely to pushed the pair higher over the next few hours of trading. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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