The AUDUSD moved to a new high going back to August 1 today but has since reversed the lower as the dollar moved higher and start to move lower leading to a risk off sentiment in the pair.
The Reserve Bank of Australia will meet in the new trading day and are expected to keep rates unchanged. Recall that the Reserve Bank of New Zealand met last week also keeping rates unchanged but they had a bit more of a hawkish tilt.
Technically, on the topside, the 50% midpoint of the 2023 trading range comes in at 0.67134. The high price today reached 0.6690 before rotating to the downside on US dollar buying and risk-off flows. On a more hawkish RBA, getting above that 50% retracement would be the next major target.
On the downside, the 38.2% retracement of the 2023 trading range comes in at 0.66087. Below that the 200-day moving average comes in at 0.6575. In trading last week, the price dipped briefly below that moving average level on Thursday before bouncing back to the upside. Getting to and through that moving average would increase the bearish bias for the pair going forward.
For a complete view of the AUDUSD from a technical perspective see the video above. What are the risks? What are the targets?
This article was written by Greg Michalowski at www.forexlive.com. Source