The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Thursday, increasing the price of AUDUSD to more than 0.7350 following some key economic releases. The technical bias shall remain bearish because of a lower low in the recent downside move.
AUD/USD Technical Analysis
As of this writing, the pair is being traded around 0.7385 . On the downside, a support can be noted around 0.7347, the low of the last major downside move ahead of 0.7300 the psychological number and then 0.7280, the low of 2016 as demonstrated in the given below daily chart.
On the upside, a hurdle can be noted near 0.7689, an immediate trendline resistance level ahead of 0.8000, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.
After its meetings in April and May, the Reserve Bank of Australia concluded: “In the current circumstances, members agreed that it was more likely that the next move in the cash rate would be up, rather than down.”
In the minutes of the June meeting, the Reserve Bank makes no reference to that line. The Reserve Bank left rates on hold at 1.5 per cent.
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.