Good day, dear traders!
It's time to consider an interesting currency pair AUD/USD, where the main attention will be paid to the technical component. However, before analyzing the price charts of this pair, let's briefly talk about the fundamental factors that can influence the price dynamics of this trading instrument.
So, this morning, reports came from Australia on the consumer price index, which largely determines inflationary pressure. According to the data, consumer prices in Australia both in quarterly and annual terms increased more than the forecasts of economists and amounted to minus 1.9% (forecast minus 2%) and minus 0.3% (forecast minus 0.4%), respectively. But the method of truncating the average of this index was weaker than expected. I would like to note at once that these releases did not have a significant impact on the price dynamics of the Australian dollar. The main event of today and the entire trading week will be the decision of the US Federal Reserve System (FRS) on interest rates, updated economic forecasts of the Open Market Committee, and the subsequent press conference of Fed Chairman Jerome Powell. With a high probability, we can assume that these events will largely determine the results of today's trading and affect the end of the week's session.
Weekly
In the meantime, as can be seen on the weekly chart, the pair shows a confident growth and rushes towards the 200 exponential moving average, which passes at 0.7212. This conclusion can be reached, given that the trading of the past five days closed above the strong resistance level of 0.7063. If the current week ends above 200 EMA, the reasons for the subsequent growth of the "Aussie" will become even more. In this case, the nearest target of the expected growth will be the level of 0.7300. By the way, concerning 0.7200, it is worth noting that this level is technically quite strong, and the presence of the 200 exponential directly above it only strengthens this mark.
Bearish sentiment for AUD/USD will increase if the bulls on the instrument manage to lose all the current growth and weekly trading ends at 0.7063 with the appearance of a reversal model of candle analysis. In this case, the breakout of the resistance of 0.7063 will be considered false, which will indicate the inability of the bulls for the "Aussie" to further advance the quote in the north direction.
Daily
In the daily timeframe, you can see how strong the resistance of sellers is at 0.7183. At this level, the maximum values of the last five-day period of trading were shown, and at the time of writing this article, this level has not yet been passed. It is likely that in certain cases, today's events will help players to increase to overcome the resistance of sellers at 0.7183. However, as noted above, the prospects for an upward trend will take their real shape only if weekly trading closes above 0.7212.
At the moment, the main trading recommendation for AUD/USD is purchases that are better considered not at the peak of the market, but after short-term corrective pullbacks. The suggested price zones for opening long positions on the AUD/USD currency pair are 0.7150-0.7100 and 0.7085-0.7070.
Regarding sales, it is better to wait for a reversal candle signal on the weekly timeframe and only then plan to open short positions.
I wish you success!