AUDUSD Reversal On Watch
AUDUSD is looking interesting to the long-side here. Recenthawkishness from the RBA, along with a solid set of June labour indicators, ismaking the Aussie one of the favourites to rebound if the current USD pullbackdevelops further this week. We’ve seen plenty of bullish divergence into therecent lows and with price now retesting the broken .6847 level there’s a niceopportunity to play an early reversal entry. Bulls can look for a break of the.6847 level targeting a move through the channel highs and the .6987 level.More conservative traders can wait for entry on break of the latte level, both playstargeting a run up to the .7191 level.
Keep an Eye On
RBA meting minutes overnight are widely expected to reaffirm RBAhawkishness, keeping the focus on further rate-hikes in the near-term. On theUSD side of things, the focus will be on any mention of the upcoming July FOMCand the prospects of the Fed opting for the expected .75% hike or going for alarger 1% hike. Brainard speaks midweek and those comments will be closely watched.If Brainard is seen echoing last week’s comments from Waller and Bullard, thisshould weigh on USD further, allowing AUDUSD room to run higher.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.