6 April, AtoZForex, Vilnius - On four-hour chart we see AUD trend reversing as we have the price action turning into bullish mode.
As Cautious bullish AUDUSD sentiment develops ahead of April FOMC minutes announcement, traders will be cautiously following the market developments.
What do indicators tell?
- The current rate is trading between 50, 100 and 200 moving averages
- The MACD histogram is in negative zone and below its signal line.
- At the same time MACD has gradually started to rise, thus indicating a possible increase in bullish AUDUSD sentiment.
- Stochastic Oscillator has come out of the oversold zone
- Also its generates a signal to buy Australian dollar (AUD), as the% K line rises above the% D.
According to our analysis bulls are trying to regain ground against bears. Of course we cannot rely on one clear signal, thus for now it is better to wait for the breakdown level at 0.7570. We believe that after confirmation the pair may be amplified on its bullish sentiment. Currently the main target will be the breakthrough of 0.7570 and from there on bullish targets could be prolonged 0.7640 and 0.7680 levels. Thus our cautious bullish AUDUSD sentiment would then be justified.
On the contrary the pair should break below its 0.7510 support zone, in order to throw the white flag in the pit.
Resistance levels: 0.7570, 0.76275, 0.76676
Current price: 0.7570
Support levels: 0.7545, 0.7500, 0.7490, 0.74775, 0.7450
As you know today at 19:00 London time we will have the March FOMC minutes. All information regarding this event you can find out from our previous March FOMC minutes expectation analysis.