The AUDUSD has been trading in a consolidation following the downward move in early June. As uncertainties in the USD continues and global recessionary concerns mount, the AUDUSD has struggled to find a clear directional bias.
Although the RBA has indicated the path for continual rate hikes at 25 to 50bps, and the possibility of avoiding a recession, the worries about decreasing demand in commodities (due to a global recession) weighs the AUD down. Also, with the FOMC charting a path to rate hikes of 75bps, the longer term recovery in USD strength seems more likely.
With major horizontal resistance level at 0.7000 and support at 0.6850, the AUDUSD seems to be forming a bearish pennant formation.
If price climbs to 0.6950 and rejects or if price breaks below 0.6900, we could see the AUDUSD trading significantly lower towards 0.6850 (short term target) and even towards 0.6700 (longer term target)
Although the RBA has indicated the path for continual rate hikes at 25 to 50bps, and the possibility of avoiding a recession, the worries about decreasing demand in commodities (due to a global recession) weighs the AUD down. Also, with the FOMC charting a path to rate hikes of 75bps, the longer term recovery in USD strength seems more likely.
With major horizontal resistance level at 0.7000 and support at 0.6850, the AUDUSD seems to be forming a bearish pennant formation.
If price climbs to 0.6950 and rejects or if price breaks below 0.6900, we could see the AUDUSD trading significantly lower towards 0.6850 (short term target) and even towards 0.6700 (longer term target)
Free trading community: discord.gg/kPDXU2ZaDt
