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FxWirePro: AUD/USD edges higher from 4-week lows at 0.7452, bias lower, good to go short on upticks

  • AUD/USD hit 4-week lows at 0.7452 before paring some losses to currently trade at 0.7464 levels.
     
  • The Fed raised rates by 25 basis points earlier this week and signaled faster rate hike path. Meanwhile, the RBA is not seen raising rates any time soon.
     
  • US-Australia bond yield differential will likely continue rising in the USD-positive manner, weighing in the pair.
     
  • Technical indicators are heavily bearish, scope for further downside.
     
  • Momentum bearish, RSI below 50, bias lower, MACD shows bearish crossover, -ve DMI dominance adds to bearish bias.
     
  • Price has dipped below 78.6% Fib, next bear target lies at 88.6% Fib at 0.7442 ahead of 0.7412 (May 9 low).
     
  • On the flipside, break above 0.7525 (trendline support turned resistance) could negate bearish bias.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-trades-range-bound-below-21-EMA-bearish-divergence-keeps-scope-for-downside-1365411) has hit all targets.

Recommendation: Book partial profits, trail SL to 0.7525, hold for 0.7445/ 0.7415.
 

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