AUD/USD Signal Today - 22/07: AUD/USD Rebounds (Chart)
Date
7/23/2024 11:23:04 PM
(MENAFN- Daily Forex) Bullish view
Buy the AUD/USD pair and set a take-profit at 0.6725. Add a stop-loss at 0.6600. Timeline: 1-2 days.
Bearish view
Set a sell-stop at 0.6630 and a take-profit at 0.6585. Add a stop-loss at 0.6700.
The AUD/USD
exchange rate continued its downtrend on Monday as the US dollar recovered. It dropped from last month's high of 0.6780 to a low of 0.6685, its lowest level since July 3rd dollar retreat continues
The AUD/USD pair dropped sharply as the US dollar bounced back. The dollar index, which tracks the greenback against a basket of currencies, rose to $104.40, up by 0.70% from last week's low of $103.65.
The pair dropped after the relatively strong Australian jobs data. According to the statistics agency, the country's unemployment rate remained at 4.1% in June while the participation rate improved slightly to 66.9%, higher than the expected 66.8%.
The report also showed that the economy added 50.2% in, beating the analysts' estimate of 19.9k. This increase was also higher than the previous month's 39k.
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These numbers mean that the Australian economy is doing well although inflation is a big concern. As such, analysts expect that the Reserve Bank of Australia (RBA) will likely be the last central bank to cut interest rates.
Looking ahead, the AUD/USD pair will have no major catalyst in the next few days. The key data to watch will be Thursday's US GDP data, which will provide more information about the country's performance.
The US will then publish the latest personal consumption expenditure (PCE) data on Friday. This is an important report that shows the change in prices in rural and urban areas in the US and is the one that the Fed focuses on/USD technical analysis
The 4H chart shows that the AUD/USD exchange rate peaked at a multi-month high of 0.6800 on July 11th. It has now dropped below the key support level at 0.6712, its highest swing on May 16th. It also moved below the important point at 0.6700, a psychological point and the highest level on June 12th.
The pair has also dropped below the 50-period moving average. Most importantly, it is nearing the ascending trendline that connects the lowest swings since May. This level will provide some support and a drop below it will lead to more downside. The alternative scenario is where the pair drops to that support and then rebounds to 0.6700.
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