AUD/USD is showing a bearish divergence at 0.6765 area
by Guillermo Alcala · FXStreetShare:
- The Aussie is showing bearish divergence at five-month highs.
- Hawkish RBA minutes and hopes of Fed cuts have boosted support for the AUD.
- The Dollar remains depressed despite Fed officials' efforts to push back rate cut hopes.
Investors´ appetite for risk as they see the end of the central bank´s tightening cycles has pushed the Aussie to nearly five-month highs. The pair is nearing the 0,6810 resistance area although the bearish divergence on the 4-hour chars suggests a reversal might be in the cards.
A hawkish RBA and Fed cut hopes are supporting the Aussie
The minutes of the RBA´s last meeting, released on Tuesday reflected a hawkish tone, with the bank keeping the options open for further tightening despite the “encouraging signs” on inflation.
This, coupled with the overall Dollar weakness, underpins support for the Aussie. The US Dollar Index remains close to four-month lows as investors ignore Fed officials’ efforts to push back hopes of March cuts.
Technical indicators remain bullish although the mentioned divergence and the hesitant mood seen on Wednesday might be anticipating a reversal or, at least some consolidation.
Immediate resistance lies at 0.6775, ahead of late July highs at 0,6820 and 0.6845. Support levels are 0.6735 and 0.6690.
Technical levels to watch
AUD/USD
Overview | |
---|---|
Today last price | 0.6763 |
Today Daily Change | 0.0001 |
Today Daily Change % | 0.01 |
Today daily open | 0.6762 |
Trends | |
---|---|
Daily SMA20 | 0.662 |
Daily SMA50 | 0.6487 |
Daily SMA100 | 0.6463 |
Daily SMA200 | 0.6578 |
Levels | |
---|---|
Previous Daily High | 0.6775 |
Previous Daily Low | 0.6701 |
Previous Weekly High | 0.6729 |
Previous Weekly Low | 0.654 |
Previous Monthly High | 0.6677 |
Previous Monthly Low | 0.6318 |
Daily Fibonacci 38.2% | 0.6746 |
Daily Fibonacci 61.8% | 0.6729 |
Daily Pivot Point S1 | 0.6717 |
Daily Pivot Point S2 | 0.6672 |
Daily Pivot Point S3 | 0.6643 |
Daily Pivot Point R1 | 0.6791 |
Daily Pivot Point R2 | 0.682 |
Daily Pivot Point R3 | 0.6865 |
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