Early last week, traders started taking profit on US dollar long positions in anticipation of an end to rate hikes. The Federal Reserve shared a sentiment that there likely won't be any further rate hikes, but they will remain elevated depending on how inflation figures come out.
From a technicals perspective, I am beginning to see some major shifts happening. Over on the AUDUSD pair, there are two key points I'd like to point out.
From a technicals perspective, I am beginning to see some major shifts happening. Over on the AUDUSD pair, there are two key points I'd like to point out.
- Price breaches above a consolidation, which I mark in a style similar to the Darvas box system. Simultaneously, the moving average crossover is a further confirmation that price momentum is accelerating to the upside.
- This pair closed off strong last Friday so I do anticipate seeing a smaller pullback on Sunday's open before a further rally to the upside.