Aussie dollar stabilizes, waiting for signals.
“Risk-on mood dragged on US dollar, propping up demand for Australian dollar”
Aussie dollar hovers near two-weeks high, extending its consolidation phase after greenback bulls comes to a stall. Market sentiment towards the currency was rather positive as Reserve Bank of Australia signalled for a larger interest rate hike in June due to stubbornly high inflation. Traders speculate that more central banks may follow the footsteps of Fed soon. For the time being, investors will wait for speech delivered by Fed Chair Jerome Powell later today for more market signals.
Quick recap on AUDUSD
AUDUSD has successfully rebound from the lower level, currently looking to extend its consolidation phase.
AUDUSD Weekly Technical Analysis
In terms of weekly chart, the pair is currently facing a hurdle near 0.7112.
AUDUSD Daily Technical Analysis
While the MACD has formed a bullish signal, it requires a close above 0.7112 to receive bullish confirmation.
Trading Idea
ORDER: BUY STOP
ENTRY: 0.7140
STOP LOSS: 0.7040
Target 1: 0.7260
Target 2: 0.7300
ZFX Analyst’s Comment
For the time being, investors are gearing up for upcoming speech from Fed Chair Jerome Powell to gain more market signals. Thus, we would wait for a confirmative breakout before looking forwards to an extension of its consolidation phase.
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