Who else is looking at major AUD pairs ahead of Australia’s CPI release?
I don’t know if you’ve noticed but AUD/USD has been forming higher highs and higher lows since last week when the pair found support from the .6500 psychological area.
I’m taking a closer look at the pair today because AUD/USD just turned lower from the .6560 area near the R1 (.6550) of today’s Standard Pivot Points and the top of an ascending channel.
How low can AUD/USD go before the buyers step in again?
AUD/USD 15-Minute Forex Chart by TV
The pair is trading near the 38.2% Fibonacci retracement of the previous days’ upswing and the mid-channel level on the 15-minute time frame.
The 38.2% Fib pullback is a good place to start if you’re looking for risk-taking to push AUD/USD to new weekly highs.
But unless we get fresh catalysts, then USD could continue to gain pips across the board including against AUD.
AUD/USD could hit lower inflection points like .6520 near today’s S1 or even the .6500 psychological level before we see sustained AUD buying.
According to the Event Guide for Australia’s April Inflation Update, AUD tends to continue its existing intraweek trend about an hour after the report’s release.
And, since the report may print lower than estimates, I’ll look at lower areas of interest for AUD/USD.
For now, I’m eyeing the .6500 psychological level as a potential entry to AUD/USD’s short-term uptrend.
A bounce from the psychological area, S2, and channel support zone could yield a good risk ratio especially if AUD/USD bounces back up to .6550.
But if risk aversion doesn’t let up before the report’s release and AUD/USD ends up breaking the .6500 support, then I’ll be looking at lower areas of interest like .6450.
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