Can’t get enough of trend plays?
AUD/USD looks set to extend an uptrend that it started in November last year!
Check out the 4-hour chart with us and see if you can grab pips from the setup:
AUD/USD 4-Hour Forex Chart by TV
If you’ve been watching commodity-related currencies like the Australian dollar, then you’ll know that AUD/USD has been showing us higher highs and higher lows since late November after the pair bounced from the .6300 major psychological handle.
And we don’t even have to look far for answers. The Fed shifting its monetary policy stance from uber hawkish to considering interest rate cuts took a toll on the U.S. dollar.
Can AUD/USD extend its uptrend? Take note that the major currencies seem to be in consolidation mode as traders wait for the U.S. CPI report that may or may not support easing measures from the Fed in the foreseeable future.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. and Australian dollars, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Easing consumer inflation in the U.S. could inspire an anti-USD trading environment and draw in more AUD/USD bulls and extend the pair’s uptrend.
In the event of weak U.S. CPI and/or risk-friendly trading environment, AUD/USD may find support from its months-long trend line, the Pivot Point area, and the 4-hour chart’s 200 SMA. The .6800 psychological level or the .6850 December highs may look attractive for AUD bulls if we do see bullish momentum.
But what if the tides turned and AUD/USD broke its uptrend?
A clear break below the trend line support and consistent trading below the .6650 potential support zone may draw in AUD/USD sellers and inspire a downtrend. The .6500 and .6400 potential inflection points are likely to attract attention should AUD/USD see sustained selling pressure.