Aussie reclaimed its gains from 0.75 to the 0.775 level and it was boosted mainly by a less hawkish than anticipated Fed decision. The USD rival remains weak and vulnerable on Fed’s monetary policy. On Tuesday morning, we are expecting RBA’s meeting and we need to see how they are going to react to the mixed Australian data (Disappointing -6.4k drop in employment, Increase in Employment Rate at 5.9% from 5.7%) as well as the management of trading relationships between AUS and China (As China is its largest trading partner).
AUDUSD Technical Outlook
The pair is facing a major support at 0.77-0.775, which is tested below many times. Therefore, if there is a valid upwards breakout then we may see a very bullish momentum. As well, there is significant space on MACD to move up. On the other hand, if price fails and rejects this area, then bears will be in control. In addition, MACD will give an important bearish divergence.
Going lower, we have noted two important supports and we could trade them if price retraces back. You should pay attention to the blue line because if price violates it, then we may have a pull back (to the yellow supports). Overall, we are bullish (5 EMA above 21 EMA).