AUDUSD Technical Analysis | Forexlive

As the Fed members continue
to stress that further rate hikes are on the cards if the data remains strong,
the market has started to price in a more hawkish scenario as the data since
the last FOMC meeting kept on surprising to the upside leading to US Dollar
strength. A lot will depend on the next NFP and CPI reports, but a July hike
seems already baked in and only big misses may change that outcome.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that since tapping
into the 0.69 handle, AUDUSD just kept on falling and has almost erased all the
rally seen since the beginning of June. Both the buyers and sellers were faked
out by the breakouts which shows how uncertain and hard to trade the current
market is. The target now should be the 0.6563 support where
the buyers are likely to step in to target a rally towards the 0.6781
resistance, while the sellers will want to see a break lower to pile in even
more aggressively and look forward to a new low.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that since breaking
out of the rising channel and the moving averages
crossover, the sellers just kept on piling in aggressively at every pullback.
We have the downward trendline and the
red 21 moving average acting as resistance and we are likely to see the sellers
to step in again here targeting another lower low at the 0.6563 support. The
buyers will need a breakout to the upside to find some conviction and start
positioning for a rally towards the 0.6781 resistance.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
clearly the resistance zone at the trendline where there’s also the 38.2% Fibonacci
retracement level and a round 0.6650 number. This
zone will be key and the only two scenarios are:

• A break to the upside leading to a rally
  towards the 0.6781 resistance.
• A rejection leading to a new lower low
  into the 0.6563 support.

Today, we have the US
PCE report and higher than expected figures are likely to lead to US Dollar
strength while lower than expected data should weaken the greenback.