AUDUSD Forecast and Technical Analysis: Short term Recovery
Fundamentals: RBA President Philip Lowe said he’d still like to see the nation’s currency weaken further and sees interest rates remaining at a record low “for a while yet.” In his semi-annual testimony, the governor also noted the currency’s resilience in recent years. He said policy makers had hoped that as the Federal Reserve tightened, it would drive the U.S. dollar higher and its Aussie counterpart lower. That, in turn, would spur local inflation and jobs and let the Reserve Bank of Australia start to normalize rates.
Inflation figures are still far away from the targets. Lowe signaled Australia’s economy will need to generate higher household incomes and faster inflation before policy is tightened for the first time since 2010.
On the smaller chart timeframes, we see an Inverted Head And Shoulders pattern, giving the signals of short-term recovery.
The pair broke the 0.72900 resistance – the neckline of I SHS pattern- The target of the formation is 0.73800. If the pair breaks above 0.73220, it is likely to test 0.73800.
We will look for a short opportunity if the price tests 0.73800. This is simply a corrective move and all the pullbacks can be used as a selling opportunity as long as the pair makes daily closings below 0.75000.
The main support is 0.72500. Break below 0.72500 may carry the price 0.72000 and 0.71700.
The pair tested 0.73800 and pulled back. Break below 0.72900 will carry the price 0.72500, 0.72100 and 0.71700.
You can follow the setup: AUDUSD I SHS PATTERN
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AUDUSD Forecast: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility