AUD/USD Into Support Ahead of RBA Interest Rate Decision
- AUDUSD testing support ahead of RBA
- Release to threaten immediate short-bias
- Updated targets & invalidation levels
Chart Created Using FXCM Marketscope 2.0
Technical Outlook: AUDUSD reversed off slope resistance last week with the broader long-bias at risk near-term heading into tonight’s Reserve Bank of Australia (RBA) interest rate decision. The pair is now testing support at 7590-7606- a region defined by the 61.8% extension of the decline off the highs and the April low-day close. A break below confluence support at 7559 is needed to validate a more significant near-term reversal in the pair targeting 7510 & 7481/82.
Interim resistance stands at 7638/43 with a breach above the weekly opening-range highs at 7677 targeting last week’s high at 7722. Keep in mind that longer-dated slope resistance extending off the October high converges on this level heading deeper into the week with the broader long-bias at risk while below this mark. Ideally I would be looking for a final rally to fail just above the highs to offer favorable short entries. A breach / close above keeps the focus higher targeting the June high-day close at 7794. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!
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- The DailyFX Speculative Sentiment Index (SSI) has held a net-short position since March 1st with the ratio standing at -1.23 (59% of traders are long- up from 54% the previous day)
- The ratio has continued to narrow after hitting an extreme of -2 last month, suggesting that the retail short-bias may be waning (bearish near-term)
- Open interest is 5.1% lower than yesterday and 12.2% below its monthly average heading into the RBA tonight
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Relevant Data Releases This Week
Other Setups in Play:
- Webinar: Start of Month, Quarter Yields Fresh Scalp Opportunities
- USDOLLAR Braces for NFPs- Rally to Offer Favorable Short Entries
- USDOLLAR at Cross Roads Heading Into 2Q- Initial Support 11970
- Webinar: Month / Quarter End Setups- USD Crosses in Play Ahead of NFP
- AUD/USD in Correction- 7590 Key Resistance
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---Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.