Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Stuck in a Tight Range

[ad_1]

There will be no major news from Australia and the US on Wednesday. 

  • Buy the AUD/USD pair and set a take-profit at 0.6800.
  • Add a stop-loss at 0.6600.
  • Timeline: 1-2 days.
  • Set a sell-stop at 0.6680 and a take-profit at 0.6550.
  • Add a stop-loss at 0.6800.

The Australian dollar remained in a consolidation phase on Wednesday as traders focused on the hawkish RBA minutes and the strong Chinese economic numbers. The AUD/USD pair was trading at 0.6740, where it has been in the past few days.

The main news that moved the AUD/USD pair was the minutes by the Reserve Bank of Australia. These minutes showed that the bank was still committed to fighting inflation which is proving more sticky than expected. As a result, the bank said that it could resume implementing more interest rate hikes in the coming months.

The minutes noted that inflation has been so high while the labor market has tightened so much in the past few months. As a result, the committee judged that it needed more time to gather more information about the state of the economy.

Meanwhile, data from China were hotter than expected as the country emerged from a Covid-zero strategy. It expanded by more than 4%, helped by a robust housing market, higher exports, and consumer spending. Retail sales, fixed asset investments, and industrial production rose in March.

There will be no major news from Australia and the US on Wednesday. Therefore, the pair will react to more corporate earnings from the US.

The daily chart shows that the AUD/USD pair has been moving sideways after bottoming at 0.6560 in March. In this period, the pair has formed a small ascending channel shown in red. It is also hovering at the 38.2% Fibonacci Retracement level.

Most importantly, the pair has formed an inverted head and shoulders pattern whose neckline is at 0.7152. In technical analysis, this pattern is usually a bullish sign. The pair is also oscillating at the 25-day and 50-day moving averages. Therefore, based on this chart, the pair will likely remain in this range in the next few days and then have a bullish breakout.

AUD/USD

The AUD/USD has also been consolidating recently, with the current price being lower than last week’s high of 0.6800. As in the daily chart, the pair is trading at the 25-day and 50-day moving averages. It is also slightly above the lower side of the ascending channel. The Australian dollar is also at the Woodie pivot point.

Therefore, it will also remain in this range on Wednesday since there will be no major economic data or events.

AUD/USD

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.