The AUSSY Dollar encounters resistance at 0.6784 – What Next?
- Close to 0.6784, AUD/USD is likely to be resisted from rallying higher.
- On the Daily chart, a significant bullish momentum has been in play from 28th April 2023 originating from a double bottom.
- The Aussy Index is looking to rally up to the 70.70 psychological level for a Sell.
- A break above 0.6810 could be a positive sign for the Aussy Dollar
Technical Analysis of AUD/USD
The AUD/USD has been attempting to break the 0.6784 resistance but it keeps getting rejected. The last rejection drove the price down to the support, the support held it, hence the formation of a double bottom on the daily chart. Back at the resistance level, looking towards the supply zone at 0.7050, does the Australian government have what it takes to boost their economic performance for a drive up of their currency price 300 pips? Both the Inner and the Outer trendline have been cleanly broken, which gives approval for the supply zone 0.7050. But price needs to retrace back to the supply zone which could take days.
In the meantime, if Investors have a positive sentiment about the Value of the AUD, then there is the possibility of breaking the resistance and rallying up to the supply zone.
The reaction at the resistance will also be determined by the position of the United States Consumer Price Index. If the CPI comes out negative, the AUD will gain strength against the USD, but if the reverse happens, the resistance will definitely hold leading to a massive sell.
Economic Release To watch
- The United States Consumer Price Index
Author: A.A. James
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