AUD/USD Price Analysis – Nov 28, 2024
Daily Price Outlook
During the European trading session, the AUD/USD currency pair managed to halt its downward trend and regained some traction around the 0.6505 level, reaching an intraday high of 0.6510.
This uptick was largely driven by a brief bounce in the US Dollar, which had fallen to a two-week low previously. However, the US dollar quickly regained positive momentum, aided by recent US economic data.
The data highlighted a resilient economy and slower progress in inflation, which suggests that the Federal Reserve may adopt a more cautious approach towards further rate cuts. This outlook helped lift US Treasury yields, boosting demand for the USD and putting some pressure back on the AUD/USD pair.
US Dollar Rebounds on Strong Economic Data and Inflation Outlook, Pressuring AUD/USD
On the US front, the broad-based US dollar maintained its upward trend and bounced back from a two-week low, thanks to stronger economic data.
The US economy showed resilience with signs of slowing inflation, which suggests that the Federal Reserve might be more cautious about cutting interest rates further. This helped push US Treasury bond yields higher, boosting demand for the dollar.
On the data front, the latest US economic reports played a key role in this shift. The Personal Consumption Expenditures (PCE) Price Index rose to 2.3% in October, up from 2.1% in September.
The core PCE, which excludes food and energy prices, also saw a slight increase, rising to 2.8% from 2.7%. Meanwhile, US GDP grew at a healthy 2.8% annual rate in the third quarter, driven by strong consumer spending, which rose by 3.5%. Jobless claims also fell by 2,000 to 213,000, signaling a solid labor market.
However, there was a slight disappointment with October's Durable Goods Orders, which only rose by 0.2%, missing expectations of a 0.5% increase.
Excluding transportation, the rise was even smaller, at 0.1%. Despite this, concerns over inflation and the potential impact of future policies under President-elect Donald Trump, combined with the latest Federal Reserve minutes, gave the dollar an edge.
The rebound in US Treasury yields also helped support the dollar, putting some upward pressure on AUD/USD pair.
AUD/USD Faces Pressure Amid Economic Concerns and Global Tensions, But RBA's Hawkish Stance Provides Support
On the other hand, the gains in the AUD/USD pair were also supported by stronger-than-expected data on Private Capital Expenditure in Australia. Australia's new capital expenditure rose by 1.1% in the third quarter, surpassing market expectations of a 0.9% increase.
This rebound followed a 2.2% decline in the previous quarter, showing some strength in the Australian economy. However, despite this positive data, the Australian Dollar remained subdued against the US Dollar, partly due to reduced trading activity ahead of the US Thanksgiving holiday.
Looking ahead, the AUD/USD pair may face downward pressure as the US plans to introduce new measures aimed at limiting China’s progress in artificial intelligence technology.
Given the strong trade links between Australia and China, any economic changes in China could have a significant impact on Australian markets, possibly weakening the Australian Dollar.
Furthermore, the market sentiment was dampened after President-elect Donald Trump's announcement of a 10% tariff hike on all Chinese goods entering the US.
However, the downside for the AUD was limited by the Reserve Bank of Australia's (RBA) hawkish stance on future interest rates. Australia's monthly Consumer Price Index (CPI) rose by 2.1% year-over-year in October, staying within the RBA's target range of 2-3%.
Although this was slightly below expectations of 2.3%, it marked the lowest inflation rate since July 2021 and helped support the Australian Dollar in the face of global economic concerns.
AUD/USD – Technical Analysis
AUD/USD is trading at $0.64824, down 0.21%, as bearish sentiment continues to dominate below the $0.65014 pivot point. The 4-hour chart indicates immediate resistance at $0.65918, with additional barriers at $0.66399.
The 50-day EMA at $0.64987 reinforces short-term resistance, limiting upward momentum. A breakout above $0.65456, the key pivot level, would be required to shift the bias toward bullish territory, potentially targeting $0.65918 and beyond.
On the downside, immediate support is found at $0.64497, with further declines targeting $0.64154 and $0.63763. The RSI at 48 suggests a neutral stance, leaning slightly bearish, with no immediate oversold signals. However, continued pressure below the pivot could drive the pair toward lower support zones.
Current trends suggest sellers remain in control, especially if the price sustains below $0.65052. Traders are advised to consider selling below this level, with a take-profit target at $0.64488 and a stop-loss at $0.65504 to manage risk.
The short-term outlook hinges on whether AUD/USD can break above the $0.65456 pivot.
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AUD/USD Price Analysis – Nov 26, 2024
Daily Price Outlook
During the European trading session, the AUD/USD pair is struggling to break its bearish trend, remained under pressure around the 0.6490 level and hitting a low of 0.6434. The main reason behind its decline is the growing concerns over the US-China trade tensions.
It should be noted that US President-elect Donald Trump recently warned about imposing a 25% tariff on goods coming from Mexico and Canada, along with an extra 10% tariff on Chinese imports. This has made investors more cautious, especially when it comes to riskier assets, and has weighed heavily on the Australian Dollar.
Despite the Reserve Bank of Australia’s (RBA) hawkish stance, the AUD has failed to gain momentum. Besides this, some buying in the US Dollar (USD) has added to the bearish outlook for the AUD/USD pair in the near term.
Looking forward, traders are hesitant to make big moves, waiting for the FOMC meeting minutes to get a better idea of future rate cuts.
US Dollar Strengthens Amid Trade Policy Concerns and Slower Fed Rate Cuts, Weighing on AUD/USD
On the US front, the broad-based US dollar has been gaining strength due to concerns around US President-elect Donald Trump's trade policies. Trump threatened to impose a 25% tariff on imports from Mexico and Canada and an additional 10% on Chinese goods. These threats have reduced investors' interest for riskier assets, weighing on the Australian Dollar (AUD).
Looking ahead, traders seem cautious, waiting for the FOMC meeting minutes to get a clearer picture of potential rate cuts. Meanwhile, the US dollar gained traction as traders anticipated slower interest rate cuts from the Federal Reserve.
Scott Bessent’s nomination as US Treasury Secretary briefly eased concerns that Trump’s policies could reignite inflation and force the Fed to cut rates aggressively. As a result, US Treasury yields rose, attracting more buyers to the USD.
Therefore, the US dollar's strength, fueled by concerns over Trump's trade policies and expectations of slower Fed rate cuts, has weighed on the Australian Dollar (AUD). This has contributed to a bearish outlook for the AUD/USD pair, pushing it lower.
AUD/USD – Technical Analysis
The AUD/USD pair is trading at $0.64901, down 0.20%, as bearish sentiment persists below the pivot point at $0.65456. Price action remains constrained under the 50-day EMA, currently at $0.65068, which reinforces the downside bias.
Immediate support is located at $0.64497, with further levels seen at $0.64154 and $0.63763, suggesting potential for further declines if selling pressure intensifies.
On the upside, resistance lies at $0.65918 and $0.66399, which align with key technical levels that could limit recovery attempts. The RSI at 45 reflects neutral-to-bearish momentum, signaling that sellers remain in control, but the pair is not yet oversold.
The bearish trend appears intact, with traders eyeing a possible break below $0.65014. A sustained move below this level could open the door toward the next target of $0.64488, while the 50-day EMA continues to act as a dynamic resistance level.
Conversely, a recovery above the pivot at $0.65456 would be required to negate the bearish outlook and aim for the higher resistance at $0.65918.
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AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Outlook: Trading below the pivot point $0.65456 reinforces downside risks.
- Support Levels: Immediate support at $0.64497, with deeper targets at $0.64154.
- Trend Resistance: The 50-day EMA at $0.65068 caps recovery attempts.
The AUD/USD pair is trading at $0.64901, down 0.20%, as bearish sentiment persists below the pivot point at $0.65456. Price action remains constrained under the 50-day EMA, currently at $0.65068, which reinforces the downside bias.
Immediate support is located at $0.64497, with further levels seen at $0.64154 and $0.63763, suggesting potential for further declines if selling pressure intensifies.
On the upside, resistance lies at $0.65918 and $0.66399, which align with key technical levels that could limit recovery attempts. The RSI at 45 reflects neutral-to-bearish momentum, signaling that sellers remain in control, but the pair is not yet oversold.
The bearish trend appears intact, with traders eyeing a possible break below $0.65014. A sustained move below this level could open the door toward the next target of $0.64488, while the 50-day EMA continues to act as a dynamic resistance level.
Conversely, a recovery above the pivot at $0.65456 would be required to negate the bearish outlook and aim for the higher resistance at $0.65918.
AUD/USD - Trade Ideas
Entry Price – Sell Below 0.65052
Take Profit – 0.64488
Stop Loss – 0.65504
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$564/ -$452
Profit & Loss Per Mini Lot = +$56/ -$45
AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: Immediate at $0.65918, followed by $0.66399.
- Support Levels: Key support at $0.64497, with additional levels at $0.64154 and $0.63763.
- Technical Indicators: RSI at 54 and 50 EMA at $0.64945 suggest balanced momentum with potential for further upside.
The AUD/USD is trading at $0.65119, up 0.10% in the 4-hour timeframe, as the pair shows signs of recovery from earlier lows.
The pivot point at $0.65456 serves as a key level to watch, with a bullish breakout above this potentially opening the door to immediate resistance at $0.65918.
Further upside targets include $0.66399, aligning with improving market sentiment for the Australian dollar amid recent positive economic data.
On the downside, immediate support is located at $0.64497, followed by $0.64154 and $0.63763, where buyers may step in if the pair experiences any pullbacks. The 50-day EMA at $0.64945 is acting as a critical support level, reinforcing the bullish outlook while keeping short-term risks contained.
The RSI at 54 reflects neutral momentum, indicating room for both upside or downside movements depending on broader market catalysts.
Traders should monitor any break above $0.65456 for confirmation of further gains, while a drop below $0.64896 could negate the current upward bias and bring the $0.64497 support level into play.
For a strategic approach, an entry above $0.64895 is recommended, with a stop loss at $0.64503 to minimize downside risks. Profit targets are set at $0.65463 and potentially higher levels if resistance is breached.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 0.64895
Take Profit – 0.65463
Stop Loss – 0.64503
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$568/ -$392
Profit & Loss Per Mini Lot = +$56/ -$39
AUD/USD Price Analysis – Nov 21, 2024
Daily Price Outlook
During the European trading session, the AUD/USD currency pair continued its upward trend, trading near the 0.6520 level.
This rise was due to a weaker tone in the US Dollar, as buyers stepped back to assess US President-elect Donald Trump's proposed policies before making new moves.
Moreover, the recent market reaction to Russian President Vladimir Putin’s approval of a lower threshold for nuclear strikes initially caused concern. However, this quickly faded after comments from both Russian and US officials eased fears of a nuclear conflict.
This helped boost market sentiment, which in turn put pressure on the safe-haven USD, benefiting risk-sensitive currencies like the Australian Dollar.
RBA's Hawkish Stance Boosts AUD/USD as Inflation Concerns Support Australian Dollar
Furthermore, the upticks in the AUD/USD pair gained extra support from the Reserve Bank of Australia's (RBA) recent comments. However, the RBA has maintained a hawkish stance, which means it is focused on keeping inflation under control by using stricter monetary policies.
This approach has been helping the Australian Dollar remain strong against other currencies, including the US Dollar.
Earlier this week, the RBA's November meeting minutes showed that the board is concerned about rising inflation. They highlighted the need to keep interest rates high to prevent inflation from getting worse.
This cautious approach from the RBA reassures investors and boosts confidence in the AUD. Together with the overall positive market mood, this has helped lift the AUD/USD pair.
US Dollar Faces Bearish Pressure Amid Policy Uncertainty and Market Sentiment, Capping AUD/USD Gains
On the US front, the broad-based US dollar was unable to maintain its upward trend and turned bearish due to a softer market tone. Traders have decided to wait on the sidelines for more clarity on US President-elect Donald Trump’s proposed policies before making fresh moves.
Despite this, the expectations that the Federal Reserve (Fed) may adopt a less dovish stance are still supporting the USD. The market is now pricing in a 50% chance that the Fed will cut interest rates by 25 basis points in December, mainly due to concerns that Trump's potential tariffs and tax cuts could push inflation higher.
This outlook is supporting US Treasury bond yields, which is encouraging some buying of the USD. As a result, this keeps a lid on the upside potential for the AUD/USD pair. Traders are now waiting for US economic data and comments from key Federal Reserve officials for further direction.
AUD/USD - Technical Analysis
The AUD/USD is trading at $0.65119, up 0.10% in the 4-hour timeframe, as the pair shows signs of recovery from earlier lows.
The pivot point at $0.65456 serves as a key level to watch, with a bullish breakout above this potentially opening the door to immediate resistance at $0.65918.
Further upside targets include $0.66399, aligning with improving market sentiment for the Australian dollar amid recent positive economic data.
On the downside, immediate support is located at $0.64497, followed by $0.64154 and $0.63763, where buyers may step in if the pair experiences any pullbacks. The 50-day EMA at $0.64945 is acting as a critical support level, reinforcing the bullish outlook while keeping short-term risks contained.
The RSI at 54 reflects neutral momentum, indicating room for both upside or downside movements depending on broader market catalysts.
Traders should monitor any break above $0.65456 for confirmation of further gains, while a drop below $0.64896 could negate the current upward bias and bring the $0.64497 support level into play.
For a strategic approach, an entry above $0.64895 is recommended, with a stop loss at $0.64503 to minimize downside risks. Profit targets are set at $0.65463 and potentially higher levels if resistance is breached.
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AUD/USD Price Analysis – Nov 19, 2024
Daily Price Outlook
Following the release of the Reserve Bank of Australia's (RBA) November Meeting Minutes on Tuesday, the Australian Dollar (AUD) remained stable against the US Dollar (USD). According to the minutes, the RBA board is concerned about the possibility of increased inflationary pressures, which underlined the importance of restrictive monetary policy.
Despite recent aggressive pronouncements by Federal Reserve (Fed) officials, the US Dollar (USD) is in a downward correction. However, the Greenback's downside may be limited since investors expect the next Trump administration to prioritize tax cuts and raise tariffs. These policies may increase inflation, limiting the pace of Fed rate decreases.
The US Dollar Index (DXY), a gauge of the USD against a basket of currencies, is presently trading at approximately 106.27. The greenback is struggling to gain ground as the Trump trade appears to be losing steam. However, stronger US economic statistics and cautionary words from the Federal Reserve (Fed) may limit the downside for the USD in the immediate term.
Australian Dollar Gains as RBA Maintains Hawkish Stance on Interest Rates
The Australian Dollar strengthened following hawkish remarks from the Reserve Bank of Australia (RBA). Domestically, the Reserve Bank of Australia (RBA) kept interest rates at 4.35%. RBA Governor Michele Bullock emphasised that existing interest rates are adequately restrictive and will remain so until the central bank is confident in its inflation forecast.
Potential Impact of US-China Trade Tensions on the Australian Dollar
On the Australian front, Donald Trump has threatened to impose 60% tariffs on Chinese products in order to defend US companies and employment. Because China is Australia's largest trading partner, the probable negative spillovers from Trump's policies may cause the Australian Dollar (AUD) to fall.
Meanwhile, China's retail sales increased by 4.8% year on year in October, exceeding the projected 3.8% and the 3.2% growth witnessed in September. Meanwhile, industrial production increased by 5.3% year on year, falling short of the predicted 5.6% and the 5.4% growth seen in the prior period.
Australia's Labor Market Steady, Inflation Expectations Decline
On the economic front, Australia's most recent labour market report showed that the unemployment rate remained stable at 4.1% in October, with a minor gain in employment of 15.9K, all of which supported the perception of a relatively strong labour market.
Australia's seasonally adjusted unemployment rate remained at 4.1% in October, matching market expectations. However, employment change data revealed that just 15.9K new positions were created in October, falling short of the expected 25.0K.
Consumer inflation expectations in Australia fell to 3.8% in November, down from 4.0% the previous month, and reached their lowest level since October 2021.
AUD/USD – Technical Analysis
AUD/USD is trading at $0.65108, up 0.05% as modest bullish momentum dominates the 4-hour chart. The pair is currently holding above the pivot point at $0.64941, signaling a constructive tone.
The 50-day EMA at $0.64805 reinforces the bullish outlook, acting as a dynamic support level, while the RSI at 62 suggests the pair has room for further upside before entering overbought territory. A successful test and hold above $0.64941 could set the stage for an advance toward $0.65463 in the short term, but a failure to maintain this level might lead to a deeper correction.
Traders may look to initiate long positions near the pivot point at $0.64944, targeting $0.65463 with a stop-loss placed at $0.64513 to manage downside risks effectively. However, caution is warranted as the broader market sentiment remains influenced by global risk factors and economic data releases.
Consider a buy limit at $0.64944, with a take-profit target at $0.65463 and a stop-loss at $0.64513 to capitalize on the bullish potential while managing downside risks.
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AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Level: Holding above $0.64941 favors bullish momentum; failure could lead to a retest of $0.64497.
- Resistance Zones: Key levels to watch are $0.65463 and $0.65958 for potential breakout moves.
- Support Levels: Immediate support at $0.64497, with the 50-day EMA at $0.64805 providing additional strength.
AUD/USD is trading at $0.65108, up 0.05% as modest bullish momentum dominates the 4-hour chart. The pair is currently holding above the pivot point at $0.64941, signaling a constructive tone.
Immediate resistance is at $0.65463, with additional targets at $0.65958 and $0.66399 if the upward trend persists. On the downside, immediate support rests at $0.64497, followed by $0.64154 and $0.63763, which could provide a safety net if selling pressure emerges.
The 50-day EMA at $0.64805 reinforces the bullish outlook, acting as a dynamic support level, while the RSI at 62 suggests the pair has room for further upside before entering overbought territory. A successful test and hold above $0.64941 could set the stage for an advance toward $0.65463 in the short term, but a failure to maintain this level might lead to a deeper correction.
Traders may look to initiate long positions near the pivot point at $0.64944, targeting $0.65463 with a stop-loss placed at $0.64513 to manage downside risks effectively. However, caution is warranted as the broader market sentiment remains influenced by global risk factors and economic data releases.
Consider a buy limit at $0.64944, with a take-profit target at $0.65463 and a stop-loss at $0.64513 to capitalize on the bullish potential while managing downside risks.
AUD/USD - Trade Ideas
Entry Price – Buy Limit 0.64944
Take Profit – 0.65463
Stop Loss – 0.64513
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$519/ -$431
Profit & Loss Per Mini Lot = +$51/ -$43
AUD/USD Price Analysis – Nov 14, 2024
Daily Price Outlook
Despite hawkish remarks from RBA Governor Michele Bullock, the AUD/USD currency pair struggled to gain momentum, trading under pressure around the 0.6475 level and hitting an intra-day low of 0.6460.
This downward trend can be attributed to weaker-than-expected employment growth and a slight decline in the participation rate, signaling concerns about Australia's labor market and broader economic recovery.
Moreover, the US dollar’s strength, fueled by the "Trump trades" and stronger-than-anticipated October US Consumer Price Index (CPI) data, has further weighed on the AUD/USD pair.
Looking forward, traders are closely watching the US Producer Price Index (PPI) for short-term opportunities. However, the main focus will be on Fed Chair Jerome Powell’s upcoming speech, which could provide clues about the Fed’s next steps on policy.
RBA's Hawkish Stance Supports AUD, but Slower Employment Growth Puts Pressure on AUD/USD
On the AUD front, the AUD/USD pair could recover as the Reserve Bank of Australia (RBA) Governor Michele Bullock stated that current interest rates are sufficiently restrictive and will remain so until inflation trends are under control.
This suggests that the RBA is committed to maintaining its stance on inflation, which could support the AUD. She also mentioned uncertainty surrounding the actions of the US Federal Reserve and emphasized that the RBA will avoid making any hasty decisions.
Meanwhile, Australia's Prime Minister Anthony Albanese discussed trade with US President-elect Donald Trump, noting the US has a trade surplus with Australia and should "trade fairly" with its ally. He also highlighted Australia's significant investment in security.
On the data front, Australia’s unemployment rate for October was steady at 4.1%, matching expectations. The employment change in October was 15.9K, much lower than the 61.3K increase in September. The participation rate slightly dropped to 67.1% from 67.2% in September. Full-time employment rose by 9.7K, while part-time jobs increased by 6.2K.
Although employment grew, the pace was the slowest in recent months, with only a 0.1% rise compared to a 0.3% average increase over the past six months. Bjorn Jarvis, head of labour statistics, noted that unemployment is still lower than March 2020 levels, despite an increase in jobless numbers compared to last year.
Therefore, the RBA's commitment to maintaining restrictive interest rates supports the AUD, potentially providing upside for the AUD/USD pair. However, slower employment growth and a slight drop in participation may limit the AUD’s strength, keeping the pair under pressure.
US Dollar Strength Driven by Trump’s Election Win and Strong CPI Data, Weighing on AUD/USD
On the US front, the broad-based US dollar has shown strong momentum, with the US Dollar Index (DXY) hovering around 106.60, its highest level since November 2023. The recent election win of Donald Trump has raised expectations of inflationary policies, like potential tariffs, which support the US dollar.
On the data front, the October US Consumer Price Index (CPI) rose by 2.6% year-over-year, while the core CPI, excluding food and energy, increased by 3.3%, both matching forecasts. This data has kept the USD in high demand, impacting the AUD/USD pair by adding pressure on the Australian dollar.
On the monetary policy front, Fed Chair Jerome Powell said that Trump's potential return to the White House won't affect the Fed’s near-term decisions. After a recent 25-basis-point rate cut, Powell emphasized that the Fed does not speculate on future government policies.
As a result of these factors, the US dollar remains strong, keeping the AUD/USD pair under pressure, with the Greenback maintaining its upward momentum.
AUD/USD – Technical Analysis
The Australian Dollar (AUD/USD) has been in a steady downtrend, with the recent price hovering around $0.6475. The bearish momentum intensified after the pair broke below the key support level of $0.6548, which now acts as a resistance.
The next critical support zone lies at $0.6432, and a drop below this could open the door to further losses toward $0.6392 and potentially $0.6349. The Relative Strength Index (RSI) at 35 suggests that the pair is approaching oversold territory, which could hint at a possible rebound in the short term.
Technically, the 50-day Exponential Moving Average (EMA) at $0.6700 reinforces the bearish sentiment, as prices are significantly below this average, indicating continued downward pressure.
Traders looking for potential short positions might consider selling below $0.6495, with a target around $0.6432 and a stop-loss above $0.6548. The setup points to a high probability of bearish continuation unless the pair manages to reclaim support above the $0.6548 mark.
The AUD/USD pair remains bearish with potential for further downside if it stays below $0.6495. An oversold RSI may prompt a short-term bounce, but the overall trend favors sellers.
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AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Continuation: Below $0.6495 signals further downside.
- Key Support Zone: $0.6432 as a critical level for potential rebounds.
- Oversold RSI: May offer a short-term bounce but trend remains bearish.
The Australian Dollar (AUD/USD) has been in a steady downtrend, with the recent price hovering around $0.6475. The bearish momentum intensified after the pair broke below the key support level of $0.6548, which now acts as a resistance.
The next critical support zone lies at $0.6432, and a drop below this could open the door to further losses toward $0.6392 and potentially $0.6349. The Relative Strength Index (RSI) at 35 suggests that the pair is approaching oversold territory, which could hint at a possible rebound in the short term.
Technically, the 50-day Exponential Moving Average (EMA) at $0.6700 reinforces the bearish sentiment, as prices are significantly below this average, indicating continued downward pressure.
Traders looking for potential short positions might consider selling below $0.6495, with a target around $0.6432 and a stop-loss above $0.6548. The setup points to a high probability of bearish continuation unless the pair manages to reclaim support above the $0.6548 mark.
The AUD/USD pair remains bearish with potential for further downside if it stays below $0.6495. An oversold RSI may prompt a short-term bounce, but the overall trend favors sellers.
AUD/USD - Trade Ideas
Entry Price – Sell Below 0.64956
Take Profit – 0.64319
Stop Loss – 0.65485
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$637/ -$529
Profit & Loss Per Mini Lot = +$63/ -$52
AUD/USD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- AUD/USD stays bearish below the pivot at $0.65607, pressured by dollar strength.
- RSI at 30 suggests oversold conditions, but selling momentum remains high.
- Key support at $0.65369; breach could trigger a further decline toward $0.65166.
The AUD/USD pair is trading at $0.65554, down 0.28%, as it faces resistance near the pivot point of $0.65607. This level now serves as a critical marker for directional movement.
Immediate resistance sits just above at $0.65820, with additional barriers at $0.65981 and $0.66197. These levels could curtail short-term upside moves, especially as the pair remains under pressure from a strong US dollar and cautious sentiment around global growth.
On the downside, immediate support lies at $0.65369. Should the price break below this level, it may test the next support at $0.65166, with a further move toward $0.64962 if bearish momentum intensifies.
The Relative Strength Index (RSI) is currently at 30, indicating oversold conditions that could prompt a corrective bounce. However, a continued stay in the oversold region might also reflect persistent selling pressure, leaving the bearish outlook intact.
The 50-day Exponential Moving Average (EMA) is at $0.65879, slightly above the current price. This gap underscores the bearish trend, as the current price remains below both the pivot and key moving averages.
Given these signals, the short-term outlook for AUD/USD remains bearish, with potential for further declines if it stays below the $0.65607 pivot. Traders may consider entering a sell position below $0.65607, with a take-profit target of $0.65344 and a stop-loss at $0.65792 to manage risk.
AUD/USD - Trade Ideas
Entry Price – Sell Below 0.65607
Take Profit – 0.65344
Stop Loss – 0.65792
Risk to Reward – 1: 1.4
Profit & Loss Per Standard Lot = +$263/ -$185
Profit & Loss Per Mini Lot = +$26/ -$18