AUD/USD Forex Signal Today 30/07: Bearish Divergence (Chart)

(MENAFN- Daily Forex) Bearish view

• Sell the AUD/USD pair and set a take-profit at 0.6400.
• Add a stop-loss at 0.6620.
• Timeline: 1-2 days.

Bullish view

• Buy the AUD/USD pair and set a take-profit at 0.6610.
• Add a stop-loss at 0.6400.

The AUD/USD exchange rate remained under pressure following the latest Australian consumer inflation data, as traders await the upcoming Federal Reserve interest rate decision. It dropped to a low of 0.6512, down from the year-to-date high of 6618 Inflation Data and Fed Decision

The AUD/USD pair dropped after the latest Australian consumer inflation data. According to the Australian Bureau of Statistics (ABS), the headline consumer price index dropped from 2.4% in Q1 to 2.2% in Q2.

The closely watched trimmed and weighted mean consumer inflation dropped from 2.9% to 2.7% and from 3% to 2.7%. These numbers mean that the country's inflation is moving in the right direction.

Therefore, it is likely that the Reserve Bank of Australia (RBA) will decide to cut interest rates by 0.25% in the upcoming meeting. The bank caught many analysts by surprise by leaving rates unchanged in the last meeting.

The next key catalyst for the AUD/USD pair will be the upcoming economic numbers from the United States. For example, ADP will publish the latest private payrolls data, which are expected to show that the economy created over 70k jobs this month.

The US will publish the latest GDP data, which will show that the economy rebounded in the second quarter. This will be an encouraging figure after the country contracted in Q1 amid a surge in imports.

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The other crucial catalyst will be the upcoming Federal Reserve interest rate decision. Economists expect the bank to leave interest rates unchanged between 4.25% and 4.50% and signal of a potential cut later this year.

The AUD/USD pair will next react to the upcoming personal consumption expenditure (PCE) data on Friday and the nonfarm payrolls data on Friday.

EURUSD Chart by TradingViewAUD/USD Technical Analysis

The daily chart shows that the AUD/USD exchange rate pulled back to 0.6618 and reached a low of 0.6515. It retested the lower side of the ascending channel that has been forming since April.

The MACD indicator has formed a bearish divergence pattern, while the Relative Strength Index (RSI) as dropped below the neutral point of 50. Therefore, there is a risk that the token will have a bearish breakdown, with the next point to watch being at 0.6400.

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