AUD/USD Outlook Mired by Failed Attempt to Break Trendline Resistance

Australian Dollar Talking Points

AUD/USD retraces a decrease from late final week even as a G7 Summit does small to sentinel off a hazard for a tellurian trade war, and a span might continue to locate a bid over a subsequent 24-hours of trade as a new pickup in marketplace view appears to be entertainment pace.

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AUD/USD Outlook Mired by Failed Attempt to Break Trendline Resistance

Image of daily change for AUDUSD

Following a greeting to a Australia’s 1Q Gross Domestic Product (GDP) report, new developments in AUD/USD raises a operation for a some-more suggestive liberation as a span breaks out of a near-term range.

Even yet a Reserve Bank of Australia (RBA) stays in no rush to lift a money rate off of a record-low, indications of stronger-than-expected enlargement might pull a executive bank to gradually change a balance in a second-half of a year, with a alleviation in risk ardour expected to keep AUD/USD afloat forward of a assembly mins due out on Jun 18 as a miscarry from a May-low (0.7412) continues to unfold.

Keep in mind, a noted slack in Australia Home Loans might clap a aussie-dollar sell rate as Governor Philip Lowe and Co. warns that ‘the turn of domicile debt stays high,’ though a RBA Minutes might worsen a seductiveness of a Australia dollar as ‘members concluded that it was some-more expected that a subsequent pierce in a money rate would be up, rather than down.’ With that said, AUD/USD might make another try to bluster a downward trend from progressing this year as bullish movement appears to be entertainment pace, with a mangle of trendline insurgency lifting a risk for a some-more suggestive liberation in a sell rate.

AUD/USD Daily Chart

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  • String of lower-highs might furnish a incomparable pullback in AUD/USD as a near-term miscarry appears to be stalling forward of trendline resistance, with a break/close next 0.7590 (100% expansion) bringing a downside targets behind on a radar.
  • However, a 0.7650 (38.2% retracement) stays on a radar as a Relative Strength Index (RSI) extends a bullish arrangement carried over from a prior month, with a tighten behind above a settled segment lifting a risk for a run during a Fibonacci overlie around 0.7720 (23.6% retracement) to 0.7770 (61.8% expansion).
  • Next segment of seductiveness comes in around 0.7850 23.6% retracement) to 0.7860 (61.8% expansion) followed by a overlie around 0.7930 (50% retracement) to 0.7940 (61.8% retracement), that sits only above a March-high (0.7916).

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— Written by David Song, Currency Analyst

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