AUDUSD drops within a symmetrical triangle on unimpressive RBA Minutes
AUDUSD extends the week-start losses toward 0.6600 as Minutes of the latest Reserve Bank of Australia (RBA) Monetary Policy Meeting fail to inspire the bulls despite pushing back the odds of rate cuts, especially backed by the recent upbeat Australian inflation clues. It’s worth noting, however, that the 200-bar Exponential Moving Average (EMA) and a fortnight-old rising support line, respectively near 0.6645 and 0.6630, restrict the short-term downside of the Aussie pair within a two-month-old symmetrical triangle formation, currently between 0.6700 and 0.6585. Given the normal RSI conditions and the sluggish MACD signals, the quote is likely to remain chopped within the stated triangle. Even so, increasing odds of the US Dollar’s run-up on hawkish Fed Minutes and the upbeat US jobs report keep the sellers hopeful. That said, a clear downside break of 0.6585 makes the pair vulnerable to slump toward a 2.5-month-old horizontal support zone surrounding 0.6455-65.
On the contrary, AUDUSD buyers need validation from the downbeat US data/events, as well as the previously stated triangle’s top-line surrounding the 0.6700 threshold, to retake control. In that case, the yearly high marked in May around 0.6715 acts as an extra filter toward the north before fuelling the Aussie prices toward the late 2023 peak of around 0.6870. It should be observed that the 0.6800 round figure and the mid-2023 tops near 0.6900 will also challenge the quote’s advances ahead of highlighting the 0.7000 psychological magnet.
Overall, the AUDUSD pair is likely to remain depressed within a short-term triangle formation ahead of the key US data/events.
