AUD/USD Extends Bearish Reversal in Fakeout Fallout

AUD/USD OUTLOOK:

AUD/USD extends pullback after failing to clear overhead resistance across the 100-day easy transferring commonThe breakout that passed off final week seems to have been a fakeoutThis text appears at AUD/USD’s key technical ranges to observe within the coming buying and selling periods

AUD/USD TECHNICAL ANALYSIS

The Aussie launched into a short bull run towards the U.S. greenback on the outset of the month, bouncing from horizontal assist across the 0.6300 deal with and breaking out on the topside. The preliminary rally gained energy late final week because the broader U.S. greenback started to appropriate decrease following the FOMC determination and weaker-than-expected U.S. information, however costs hit a roadblock close to the 100-day easy transferring common on Monday, resulting in a pointy reversal within the alternate price (breakout appears prefer it was a fakeout).

AUD/USD’s retreat from technical resistance got here in tandem with the Reserve Financial institution of Australia’s financial coverage announcement a few days in the past. The central financial institution raised rates of interest by 25 foundation factors to 4.35%, however sounded non-committal about additional tightening, signaling that the rate-hiking cycle is perhaps drawing to a detailed. The RBA’s cautious tone bolstered weak spot within the Australian greenback, making a extra advanced situation for the Antipodean forex.

For those who’re questioning what’s in retailer for the Australian greenback within the coming months, seize a free copy of the Aussie’s elementary and technical buying and selling information.

Trying forward, it is very important watch how costs behave/react across the 0.6400 mark, which coincides with the 50-day easy transferring common. If this assist zone crumbles, promoting stress may intensify within the close to time period, doubtlessly resulting in a drop in the direction of 0.6350, the following flooring in play. Whereas AUD/USD could set up a base on this space throughout a retracement, a breakdown may open the door for a retest of this yr’s lows, situated across the 0.6300 degree.

Within the occasion that AUD/USD stabilizes and bounces again from its present place, overhead resistance might be seen at 0.6460. Efficiently piloting above this technical barrier may appeal to new patrons into the market, creating the appropriate circumstances for an ascent in the direction of 0.6510. To substantiate the top of the downturn and sign a sustained restoration for the Australian greenback, it’s important to take out this ceiling. If this situation performs out, the bulls could set their sights on the 200-day easy transferring common.

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AUD/USD TECHNICAL CHART

AUD/USD Chart Created Utilizing TradingView