AUDUSD Technical Analysis | Forexlive

USD

AUD

• The
  RBA raised the cash rate by 25 bps as expected as the central bank
  judged that the move was warranted to be more assured that inflation would
  return to target in a reasonable timeframe.
• The
  CPI report recently surprised to the upside
  prompting the market to price in a higher chance of another rate hike from the
  RBA in November, which is what we eventually got.
• The
  labour market continues to weaken as seen also
  recently with the bulk of jobs added being part-time.
• The
  wage price index surprised to the upside as wage
  growth in Australia remains strong.
• The
  Australian Manufacturing PMI fell further into contraction with
  the Services PMI plummeting back into contraction as well.
• The
  market expects the RBA to hold rates steady at the next meeting.

AUDUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that AUDUSD rallied
back into the key resistance around
the 0.65 handle following the miss in the US CPI report. The sellers stepped in
once again with a defined risk above the resistance to position for a drop into
new lows. Overall, the price action remains rangebound, but the bias is still
skewed to the upside.

AUDUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see more closely the
rejection from the key resistance and the pullback into the red 21 moving average. Given
the rangebound price action, there are no clear levels where to lean on except
the boundaries of the range defined by the 0.65 resistance and 0.6280 support.
In such instances, the market participants can either wait for a clear breakout
or “play the range” by buying at support and selling at resistance.

AUDUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
consolidation below the resistance has formed what looks like a descending
triangle with the counter-trendline and
the support at 0.6460 defining the pattern. The price can break on either side
of the pattern but what follows next is generally a sustained move in the
direction of the breakout. In this case, if the price breaks to the upside, the
buyers are likely to pile in to position for a break above the key resistance.
Conversely, if the price breaks to the downside, the sellers will increase the
bearish bets and target the 0.64 support.

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