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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Please join @ddubrovskyFX at 20:00 EST/00:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/mwYyGmK1Gf https://t.co/mvc5ajVaCh
  • 🇰🇷 Unemployment Rate (APR) Actual: 3.7% Previous: 3.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • All 9 Dow Jones sectors ended lower, with 90% of the index’s constituents closing in the red. Energy (-2.62%), financials (-2.43%) and consumer discretionary (-1.82%) were among the worst performers, while materials (-0.23%) registered small losses. https://t.co/4jHdCZ1NuL
  • RT @ZabelinDimitri: What could go wrong?! https://t.co/c6CLYsCN1d
  • Heads Up:🇰🇷 Unemployment Rate (APR) due at 23:00 GMT (15min) Previous: 3.9% https://www.dailyfx.com/economic-calendar#2021-05-11
  • (Tech Special) British Pound Analysis: GBP/USD, EUR/GBP. GBP/JPY in Focus After Sterling’s Jump $GBPUSD $EURGBP $GBPJPY #GBP #Sterling https://www.dailyfx.com/forex/technical/article/special_report/2021/05/11/British-Pound-Analysis-GBPUSD-EURGBP-GBPJPY-in-Focus-After-Sterlings-Jump.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HkYBanDOXd
  • The British Pound gained aggressively, placing the focus on levels that may send GBP/USD and GBP/JPY lower, with EUR/GBP still open to a turn higher. Will Sterling’s advance continue? Get your $GBP market update from @ddubrovskyFX here:https://t.co/PHoCHVc20M https://t.co/IBKnW68wv2
  • SEC urges caution on funds with exposure to Bitcoin futures, calls Bitcoin a "highly speculative investment" - BBG
  • SEC warns of volatility, lack of regulation in Bitcoin market - BBG #BTC #Bitcoin
  • CDC: Johnson & Johnson vaccine advantages still outweigh the rare risks $JNJ $USD
AUD/USD Bullish Reversal in the Spotlight as RBA Takes Center Stage

AUD/USD Bullish Reversal in the Spotlight as RBA Takes Center Stage

Michael Boutros, Strategist

Talking Points

AUD/USD Daily

AUD/USD Daily Chart

Technical Outlook:We discussed this setup at length in today’s Strategy Webinar and heading into the Reserve Bank of Australia (RBA) interest rate decision later tonight, the focus is on the breakout of this descending pitchfork formation extending off the yearly highs. The near-term outlook remains weighted to the topside while above 7440 (note the monthly open at 7429) with a breach higher targeting a more critical resistance into 7530/40 - a region defined by the 200-day moving average & the 50% retracement of the March decline and converges on former trendline support extending off the May low. Key support & broader bullish invalidation rests at 7376.

AUD/USD 120min

AUD/USD 120min Chart

Notes: While it’s too soon to rely on, a newly identified near-term pitchfork extending off the May lows further highlights the 7440/44 support confluence and keeps our focus higher while above this threshold. A breach above the median-line targets subsequent resistance objectives at 7515 & 7539/43.

From a trading standpoint, I’ll favor fading weakness while above confluence support heading into the release. A third of the daily average true range (ATR) yields profit targets of 22-25pips per scalp. Added caution is warranted heading the interest rate decision with the release likely to fuel increased volatility in the Aussie crosses.

AUD/USD Bullish Reversal in the Spotlight as RBA Takes Center Stage
  • A summary of IG Client Sentimentshows traders are net-short AUD/USD- the ratio stands at -1.27 (44.1% of traders are long)- weak bullish reading
  • Long positions are 5.9% lower than yesterday and 14.4% lower from last week
  • Short positions are 16.5% higher than yesterday but 6.6% lower from last week
  • Broader sentiment continues to point higher for Aussie with the recent build in short-positions further strengthening the bullish contrarian bias. That said, from at trading standpoint, I’ll still favor fading weakness while above structural support around ~7440/44.

See how shifts in AUD/USD retail positioning are effecting market trends- Click here to learn more about IG Client Sentiment indicators!

---

Relevant Data Releases

AUD/USD Bullish Reversal in the Spotlight as RBA Takes Center Stage

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