AUD/USD on track to keep its uptrend intact but a small correction wave might be taking place before the pair resumes its climb. On its 1-hour time frame, forex signals from the rising technical trend line and the Fibonacci retracement level result in a long opportunity for Aussie bulls.
As you can see from the chart included, the pair is retreating upon finding resistance at the .9450 minor psychological level. This could lead to a test of the ascending trend support and the 61.8% Fibonacci retracement level. This particular area lines up with the former resistance at the .9300 major psychological level which was broken during the release of bleak US NFP data.
More Forex Signals on AUD/USD
Reports released this week provided support for uptrend continuation and more buy signals for this pair. The positive carry and pick-up in risk appetite are other factors that encouraged traders to take advantage of long forex signals for AUD/USD.
The FOMC meeting minutes revealed that several Fed policymakers are still doubtful that the US economy can keep up with its recovery and are not sure that the central bank should start hiking rates around six months after asset purchases end. This throws shade on Yellen’s recent remark on her rate hike forecast during the FOMC statement.
Meanwhile, the Australian dollar enjoys support from a relatively hawkish RBA monetary policy stance, as the Australian central bank has emphasized that it is not looking to cut rates any further in the foreseeable future. Jobs data from the Land Down Under has also surprised to the upside and sparked a large improvement in the unemployment rate for March, leading to more long forex signals for the pair.
US data could continue to affect currency price movement in the coming days as weak figures could undermine demand for the dollar. Signs of a rebound could give it some support, but just enough to complete the corrective wave pattern on this setup.
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