Who else is looking at the major AUD crosses ahead of the Australian CPI release?
I don’t know if you noticed that AUD/USD has formed higher highs and higher lows since last week when the pair found support from the psychological area of 0.6500.
Take a closer look at the pair today because AUD/USD has turned lower from the 0.6560 area near the R1 (.6550) of today’s record pivot points and the top of the ascending channel.
How low can AUD/USD go before the buyers step in again?
AUD/USD for 15 minutes Planned by TV
The pair is trading near the 38.2% Fibonacci retracement of the previous days’ rise and the middle level of the channel on the 15-minute time frame.
The 38.2% Fibonacci retracement is a good place to start if you are looking to take risks to push AUD/USD to fresh weekly highs.
But unless we get fresh catalysts, the US dollar may continue to gain pips across the board including against the Australian dollar.
AUD/USD might hit lower inflection points like 0.6520 near the S1 hurdle today or even the psychological level of 0.6500 before we see continued buying in Aussie.
According to the Event guide to the April inflation update in AustraliaThe Australian dollar tends to continue its current weekly trend about an hour after the release of the report.
Since the report may print lower than estimates, I will look at lower areas of interest for AUD/USD.
For now, I am looking at the psychological level of 0.6500 as a possible entry for the short-term upside of the AUD/USD pair.
A bounce from the psychological, S2, and channel support area could make for a good risk ratio especially if AUD/USD rebounds to 0.6550.
But if risk aversion does not subside before the report is released and AUD/USD ends up breaching the 0.6500 support, I would look for areas of lower interest like .6450.
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