AUD/USD Signal Today 09/7: Ascending Channel Pattern (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the AUD/USD pair and set a take-profit at 0.6625.
• Add a stop-loss at 0.6400.
• Timeline: 1-2 days.

Bearish view

• Sell the AUD/USD pair and set a take-profit at 0.6400.
• Add a stop-loss at 0.6625.

The AUD/USD exchange rate stabilized after the latest Reserve Bank of Australia (RBA) interest rate decision. It was trading at 0.6530 on Wednesday as traders waited for the upcoming Federal Reserve minutes.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money RBA Decision and FOMC Minutes

The AUD/USD pair settled at the important support level at 0.6500 after the RBA delivered its interest rate decision . It caught investors off guard after the Michele Bullock-led bank decided to leave interest rates unchanged at 3.85%.

The decision was split, with six officials voting to keep rates unchanged an three of them voting to slash them. In its statement, the bank said that it was still concerned about inflation, which recently moved to its 2.5% target.

Officials judged that the economy was doing well enough to justify waiting for the quarterly inflation report later this month. Analysts now expect it to cut by either 0.25% or 0.50% in August depending on how the data comes out.

The AUD/USD pair will next react to the upcoming Federal Reserve minutes, which will provide more details about the last meeting. Still, these minutes will likely have minimal impact on the US dollar index because of the last nonfarm payroll (NFP) data.

The data revealed that the economy created over 147k jobs, up from 144k a month earlier. The unemployment rate improved to 4.1% from the previous 4.3%. Therefore, these numbers mean that the Fed will leave interest rates unchanged.

There will be no major economic numbers affecting the Australian dollar and the US dollar this week. The other key major data to watch will come out next week when the US publishes the latest inflation data.

EURUSD Chart by TradingViewAUD/USD Technical Analysis

The daily chart shows that the AUD/USD exchange rat has moved from a low of 0.5910 in April to the current 0.6530. It has formed an ascending channel and is along the lower side.

The pair has moved above the 50-day and 100-day Exponential Moving Averages (EMA). It also moved above the 50% Fibonacci Retracement level.

Therefore, the pair will likely bounce back, with the next resistance level to watch being the psychological point at 0.6600. A drop below the 100-day moving average at 0.6435 will invalidate the bullish view.

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