Preferred Strategy: The Aud has had a tight session (0.7650/93), leaving the technical outlook unchanged but with the Statement on Monetary Policy coming up we could get a directional move.
While the short term momentum indicators are neutral, the dailies appear to be turning a little more positive, suggesting that we could be in for a possible squeeze towards 0.7700, above which could see a run towards 0.7730/40.
The weekly charts still look heavy though so selling into strength remains the overall plan. Near term support arrives at 0.7650 and again at the strong level of 0.7625. An eventual break of 0.7625 would bring fresh selling which could then see a run towards 0.7600 and eventually to 0.7570. Overall, with the longer term charts looking heavy, I suspect the Aud$ is building a bear flag (see daily chart) and is biding its time ahead of a more sustained test of 0.7625/30, which could then take us to 0.7570 and eventually towards 0.7400, but patience will be required and we look likely to see better levels to sell it than we are currently trading at.
Economic data highlights will include:
RBA Monetary Policy Statement, China New Loans
All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.
Recommended Content
Editors’ Picks
Gold remains within striking distance of new record-high above $3,300
Gold clings to strong daily gains above $3,300 after setting a new all-time peak near $3,320 earlier in the day. Continued concerns over the escalating US-China trade tensions and a weakening Greenback, support the demand for the metal prior to Powell's speech.
EUR/USD remains consolidative around 1.1350 on firmer US Retail Sales
EUR/USD maintains its daily gains around the 1.1350 region on the back of the resumption of the bearish tone in the Greenback, which showed no reaction to the stronger-than-expected Retail Sales in March. Later in the day, investors are expected to closely follow Fed Chairman Powell’s comments on the economic outlook.
GBP/USD recedes from tops and revisits the 1.3250 zone
GBP/USD extends its positive streak on Wednesday, now coming under some selling pressure around the 1.3250 after earlier multi-month tops around the 1.3300 mark. The daily uptick comes on the back of the weaker US Dollar and easing inflationary pressure in the UK.
Bitcoin stabilizes around $83,000 as China opens trade talks with President Trump’s administration
Bitcoin price stabilizes around $83,500 on Wednesday after facing multiple rejections around the 200-day EMA. Bloomberg reports that China is open to trade talks with President Trump’s administration.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.