RBA to Catalyse a New Correction on AUDUSD
At its monetary policy meeting from earlier today, the RBA observed worsening growth prospects in Australia due to the Delta variant. These muted forecasts for Q3 are likely to prompt a correction on AUDUSD's uptrend.
The uptrend continues to be active, as underpinned by the ADX indicator, which has been threading above the 25-point threshold for quite a while. However, the crossover on the MACD implies the resurgence of bearish momentum in the short term.
Meanwhile, the emergence of a Hanging Man candle from the upper limit of the ascending channel means that the correction may have already started.
The price action is likely to drop to either the 23.6 per cent Fibonacci retracement level at 0.73907 or the 38.2 per cent Fibonacci at 0.73364 before bulls can regain control.
The uptrend continues to be active, as underpinned by the ADX indicator, which has been threading above the 25-point threshold for quite a while. However, the crossover on the MACD implies the resurgence of bearish momentum in the short term.
Meanwhile, the emergence of a Hanging Man candle from the upper limit of the ascending channel means that the correction may have already started.
The price action is likely to drop to either the 23.6 per cent Fibonacci retracement level at 0.73907 or the 38.2 per cent Fibonacci at 0.73364 before bulls can regain control.