Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
AUD/USD: RBA Game Plan & Levels to Know

AUD/USD: RBA Game Plan & Levels to Know

Michael Boutros,

Talking Points

  • AUD/USD opening range in focus ahead of RBA- risk lower sub-7650
  • Updated targets & invalidation levels
  • Looking for more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)

AUDUSD 120min

AUD/USD 120min Chart

Technical Outlook:Aussie has been trading within the confines of a descending channel formation extending off the March highs and heading into tonight’s Reserve Bank of Australia (RBA) interest rate decision the broader focus remains lower while within this formation. From a trading standpoint, ultimately I’m looking for a new low to fade early in the week.

Initial resistance stands at 7622 with bearish invalidation at 7649. A breach above this level would shift the focus higher for the Aussie targeting 7687. Interim support rests with the 61.8% retracement at 7590 with a break lower targeting confluence support at 7540/47(area of interest for exhaustion / long-entries)- a break below this threshold would risk substantial losses for the pair with such a scenario eyeing subsequent support targets at 7490 & 7450.

AUD/USD SSI
  • A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net-short AUDUSD- the ratio stands at -1.55 (39.2% of traders are long)- weak bullish reading
  • Traders have been net-short since January 9th when Aussie was trading near 7189- Since then, the pair has rallied 6.6% higher
  • Long positions are 17.9% higher than yesterday and 31.6% higher from last week
  • Short positions are 4.5% higher than yesterday but 3.9% lower from last week
  • While SSI continues to point higher, it’s worth noting that the recent build in long positioning continues to highlight the risk for further losses in the near-term – look for post-RBA price reaction / a break of the weekly opening range to offer further guidance.

---

Relevant Data Releases

Other Setups in Play:

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES