AUD/USD: Pair may spring up to retest the downtrend line

July 25 , 2018

 

By looking at the daily chart we can see that pair is trading in a downtrend channel which is generating bearish signal from long term to intermediate term point of view and it is making successively lower lows and lower highs. China plans to boost domestic consumption to stimulate economic growth.AUD/USD still stuck in familiar levels as uncertainty weighs more. From past couple of days bulls are leading in the pair and it seems like they are getting upside to retest the downtrend line.

 

A potential rounding bottom pattern is forming on the daily chart which is an initial signal to boost up the pair. The ways pair is behaving on the chart it seems like the short term to medium term trend is down and initially it will test the downtrend line which is almost 70 pips far away from here. If pair trades and settles above this downtrend line then only we may say that trend has been changed. Well Odds are in favor of bulls on temporarily basis and intraday bias remains bullish on pair.

 

 

 

Australia’s latest quarterly Consumer Price Index (CPI) figures will release today, it’s a crucial inflation data that Aussie bulls have been waiting for as the AUD/USD major pair continues to consolidate between recent highs and lows. Improving inflation continues to be a vexing problem for the RBA, and Aussie bulls continue to remain on the sidelines as Australia’s central bank remains in wait-and-see mode, hoping for inflation to begin picking up with expectations of a future rate hike from the RBA being pushed out into 2019.

 

 

A bullish crossover on MACD indicator is favoring the bulls and providing bullish signal for the time being and RSI is also supporting the bulls above 50 territory.. The 0.7500 level is immediate resistance level followed by 0.7600 whereas 0.7327 levels is strong key support level followed by 0.7250 levels.

 

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