AUDUSD portrays bearish triangle on Australia inflation, Fed decision day
AUDUSD fades bounce off 200-EMA, reversing from a one-week-old falling resistance line, as Australian inflation and the Federal Reserve (Fed) Interest Rate Decision decorate the calendar. Given the downbeat oscillators, as well as the Aussie pair’s placement within a two-month-old bearish triangle, the quote stays on the seller’s radar. However, a clear downside break of the stated triangle’s bottom line, close to 0.6690, becomes necessary to convince bears, not to forget the need for a sustained close beneath the 200-EMA level of 0.6730. Following that, the late June low surrounding 0.6595 and the previous monthly bottom of near 0.6485 will gain the market’s attention. In a case where the Aussie pair remains bearish past 0.6485, the theoretical target of the bearish triangle confirmation, near 0.6240, should be logical to expect as the target for the short positions.
On the contrary, an upside break of the seven-day-old resistance line, around 0.6790 at the latest, will precede the 0.6800 round figure and the last weekly high of near 0.6850 could test the AUDUSD buyers. However, major attention will be given to the triangle’s top surrounding 0.6900, a break of which won’t hesitate to propel the Aussie pair toward the 0.7000 psychological magnet. Should the quote stays firmer past 0.7000, the mid-February peak of around 0.7030 may check the upside momentum ahead of directing the bulls to the yearly top close to 0.7160.
Overall, AUDUSD appears slipping off the bull’s radar but the sellers need validation from the triangle breakdown and the fundamentals.
