Aussie Could Give Ground amid Breakout for Hourly 23.6%
By: Eddy Peng Jan 29, 2018
The Australian dollar surged on Friday to continue its gaining momentum, which lasts for more than one and half months. Its continuous growth occurred after Treasury Secretary Steven Mnuchin sent the US Dollar plummeting on Thursday when he opined that a weaker currency would be good for “trade and opportunities.”
For the shorter outlook on the AUD/USD, if we look at the 1-hour chart, intraday price is declining to $0.80951 as of 12:40 p.m. in Sydney, already breaking out Fibo (23.6%), which may lead to further loss over the next few hours. Then it will see a support below on another retracement level (38.2%).
With a combination of MACD and the Relative Strength Index employed at this moment, the descending momentum is giving us a sign that the price may retreat to some extent.
The coming two days will probably see some important economic data for both countries, including Consumer Price Index (CPI), which has an expectation of 2.0% rise in Australia, and U.S. monetary policy decision, which is expected to have no change to the settings.
Figure 1: AUDUSD H1
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