Fundamental
Overview
The USD rallied across the
board last Friday following the hot US NFP report. The market priced out all the
aggressive rate cuts expectations and it’s now finally in line with the Fed’s
projections.
This week, the greenback
extended the gains as the market started to price in some chances of a pause in
November. The focus remains on the economic data.
Today we get the US CPI
report. We will likely need a hot report to see some more downside in the pair,
while a miss could see the pair rising on the market paring back the hawkish
expectations.
AUDUSD
Technical Analysis – Daily Timeframe
AUDUSD Daily
On the daily chart, we can
see that AUDUSD is trading right in the middle of two key levels. The target
for the sellers should be the 0.6622 level although they will likely need a hot
US CPI report today to see the bearish momentum increasing. The buyers, on the
other hand, will want to see the price bouncing back and breaking above the 0.68
handle to target new highs.
AUDUSD Technical
Analysis – 4 hour Timeframe
AUDUSD 4 hour
On the 4 hour chart, we can
see that we have a downward trendline defining the current bearish
momentum. The sellers will likely keep on leaning on it to position for further
downside, while the buyers will want to see the price breaking higher to pile
in for a rally into new highs.
AUDUSD Technical
Analysis – 1 hour Timeframe
AUDUSD 1 hour
On the 1 hour chart, we can
see more clearly the recent price action with the trendline acting as a strong barrier.
There’s not much else to add here as the sellers will look for a rejection and
new lows ahead, while the buyers will want to see the price breaking higher to
gain more confidence for new highs. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we have the US CPI report and the US Jobless Claims figures. Tomorrow,
we conclude with the US PPI and the University of Michigan Consumer Sentiment
report.