Key Area Of Topside Resistance For The AUD/USD
Shain Vernier • 1 min read
The primary forex event of the next 18 hours is the release of the Reserve Bank of Australia (RBA) Meeting Minutes. Concerns surrounding recent financial industry scandals and lagging gold are likely to be addressed as policymakers attempt to restore confidence in the Australian dollar.
Amid a strong global economic cycle, the Aussie has faltered. Since the January high of .8136, the bears have been in complete control, prompting an intermediate-term sell-off of the AUD/USD.
The weekly chart illustrates the extent of 2018’s bear run in the AUD/USD. Currently, we are seeing buyers dig in around the .7550 level. Here are two weekly technicals to watch as the RBA takes center stage:
- Resistance(1): 38% Fibonacci Retracement, .7565
- Support(1): Swing Low, .7412
Overview: The area between .7560-.7565 has been a hotly contested zone of two-way action. In the event that we see a hawkish tone from the RBA minutes, a breakout above this level is likely.
Last week’s candle formed a Doji for the AUD/USD. This gives additional credence for a directional move coming soon. The RBA Minutes may act as the catalyst for this move. It is a bit early to form a trading plan for the AUD and RBA, but today’s close will be instrumental in setting up a potential trade for the coming session.
As always, stay tuned to FX Leaders for more on how to trade the Aussie and RBA minutes.