The Australian Dollar is edging higher on Tuesday shortly after the release of the minutes of the Reserve Bank of Australia (RBA) monetary policy meeting earlier in the month. RBA policymakers showed no signs they were in a hurry to reduce interest rates.
Instead, Australia’s central bank held firm on rates, even as a slide in the nation’s home prices deepens, as it awaits a resolution to the divergence between strong hiring and decelerating economic growth.
“Members agreed that there was not a strong case for a near-term adjustment in monetary policy,” the minutes of its March 5 policy meeting released in Sydney Tuesday showed. “Rather, they assessed that it would be appropriate to hold the cash rate steady while new information became available that could help resolve the current tensions in the domestic economic data.”
At 01:55 GMT, the AUD/USD is trading .7108, up 0.0004 or +0.07%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through yesterday’s high at .7120 will reaffirm the uptrend. A move through .7041 will change the main trend to down.
The AUD/USD is currently trading inside a major retracement zone at .7079 to .7153. This zone is controlling the longer-term direction of the Forex pair.
The main range is .7207 to .7003. Its retracement zone at .7105 to .7129 is currently being tested. This zone falls inside the major retracement zone.
On the downside, the support is another major retracement zone at .7030 to .6967. This zone provided support on March 8 when the AUD/USD reached a bottom at .7003.
Daily Technical Forecast
Based on the early price action on Tuesday, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the 50% level at .7105.
A sustained move over .7105 will indicate the presence of buyers. The next upside target is a downtrending Gann angle at .7117. This is followed by yesterday’s high at .7120 and a Fibonacci level at .7129.
The Fib level at .7129 is the trigger point for an acceleration to the upside with the next target coming in at .7153.
A sustained move under .7105 will signal the presence of sellers. If this generates enough downside momentum then look for a potential plunge into the major 50% level at .7079, followed closely by an uptrending Gann angle at .7073.
The Gann angle at .7073 is also the trigger point for an acceleration into the next uptrending Gann angle at .6968.
This article was originally posted on FX Empire
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