November 05, 2024 10:48 GMT
FOREX: AUDUSD Prints Fresh Weekly High Following RBA Hold
FOREX
- AUDUSD (+0.50%) has revisited the Monday highs in recent trade, printing a fresh weekly high of 0.6620. Moves this week have been dominated by a softer dollar backdrop, and the resumption of AUD strength overnight has been assisted by the RBA maintaining a hawkish stance, having seen little change in the economy over the last few months to warrant an adjustment to its higher-for-longer strategy.
- Price action narrows the gap to initial resistance at 0.6648, the 20-day EMA. The more significant 50-day resides at 0.6691, which may limit the short-term topside given overnight straddle pricing currently points to a ~50pip move either side of the strike.
- Furthermore, the latest pause to the overall AUDUSD bear cycle appears to be a flag formation, a bearish continuation signal that reinforces the current trend condition.
- Indeed, with major equity indices consolidating towards the October lows, any resumption of weakness for the pair would refocus attention on 0.6490, the 76.4% retracement of the Aug 5 - Sep 30 bull leg. Below here 0.6472, the Aug 6 low marks key support.
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