AUD/USD: RBA Game Plan & Levels to Know

Talking Points

  • AUD/USD opening operation in concentration forward of RBA- risk reduce sub-7650
  • Updated targets cancellation levels
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AUDUSD 120min

AUD/USD 120min Chart

Technical Outlook:Aussie has been trade within a proportions of a forward channel arrangement fluctuating off a Mar highs and streamer into tonight’s Reserve Bank of Australia (RBA) seductiveness rate preference a broader concentration stays reduce while within this formation. From a trade standpoint, eventually I’m looking for a new low to blur early in a week.

Initial insurgency stands during 7622 with bearish cancellation during 7649. A crack above this turn would change a concentration aloft for a Aussie targeting 7687. Interim support rests with a 61.8% retracement during 7590 with a mangle reduce targeting connection support at 7540/47(area of seductiveness for depletion / long-entries)– a mangle next this threshold would risk estimable waste for a span with such a unfolding eyeing successive support targets during 7490 7450.

  • A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-short AUDUSD- a ratio stands during -1.55 (39.2% of traders are long)- diseased bullish reading
  • Traders have been net-short given Jan 9th when Aussie was trade nearby 7189- Since then, a span has rallied 6.6% higher
  • Long positions are 17.9% aloft than yesterday and 31.6% higher from final week
  • Short positions are 4.5% aloft than yesterday but 3.9% reduce from final week
  • While SSI continues to indicate higher, it’s value observant that a recent build in prolonged positioning continues to prominence a risk for serve waste in a near-term – demeanour for post-RBA cost greeting / a mangle of a weekly opening operation to offer serve guidance.

Relevant Data Releases

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– Written by Michael Boutros, Currency Strategist with DailyFX

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