The AUDUSD rose to 0.7354 in Asia – the highest level since Aug. 10 – having gained close to 100 pips in the last three trading days. What next should traders expect? Gain insight into this 21 August AUDUSD Technical Outlook.
21 August, OctaFX – The corrective rally gathered steam on Friday as the yellow metal (one of Australia’s top exports) recovered sharply from the multi-month low of $1,160.
Further, the USD has been taking beating since yesterday likely due to fears that Trump’s criticism of the Fed may force the central bank to slow down the pace of policy tightening.
AUDUSD Fundamental Highlights
As a result, AUDUSD is better bid in Asia. The minutes of the Reserve Bank of Australia (RBA) August monetary policy meeting reiterated that there is no strong case for rate hike in the near-term, but the next move will likely be up if the economy continues to evolve as expected.
Essentially, the minutes offered no hawkish or dovish surprise, leaving the pair at the mercy of the broader market sentiment.
At press time, the AUDUSD is trading at 0.7348 – up 0.20 percent on the day. The currency pair could extend gains if the treasury yields extend the overnight decline.
21 August AUDUSD Technical Outlook
Support: 0.7333 (session low), 0.7310 (July 2 low), 0.73 (5-day MA)
Resistance: 0,7387 (50-day MA), 0.74 (psychological level), 0.7453 (Aug.9 high).
This article about 21 August AUDUSD Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.