The Australian Dollar inched higher against the US Dollar on Monday, increasing the price to more than 0.6900. The price increase occurred after the release of key economic news. In spite of falling drastically during the last week, the pair somehow managed to close high as compared to the lower printed during the last downside move, therefore, the technical bias might remain bullish as shown in the graph below.
AUD/USD: Technical Analysis
As of writing this piece, AUDUSD is being traded near 0.6913. As the price moves upwards, there may be a few resistance levels that come across the price including the foremost resistance level which stands near 1.6925, the key horizontal resistance, before it hits another resistance level around 1.6945, the trend line resistance and then 1.6966 might now allow the price to pass through it, it’s the 23.6% Fib level resistance.
On the other hand, the pair may also receive some support near multiple levels if the price started falling downside such as 0.6859, the confluence of a trend line and horizontal support level which might act as a strong support level keeping the price to stick around, ahead of 0.6800, the psychological number and then 0.6754, the low of November 29, 2019, may prevent the price from falling further as shown in the graph above.
Australia’s RBA Interest Rate Economic Release
From a fundamental point of view, the Reserve Bank of Australia release the stats concerning Interest Rates which might trigger some sort of stimulation for the interest rates to rise high or stay low. Should the RBA is hawkish about the inflationary outlook the interest rates are likely to increase and indicates a bullish market for the Aussie Dollar and vice versa.
Considering the price behavior of the pair for the last couple of days, opening positions for a short interval of time may not be a good idea.