top of page

Title: AUD/USD Price Analysis: Intraday recovery falters near mid-0.6500s despite weaker USD

  • Writer: analysiswatch
    analysiswatch
  • Oct 4, 2022
  • 1 min read

October 4, 2022 04:32 AM ET


By: AnalysisWatch


The AUD/USD currency pair recovers its previous day's losses, led by the Reserve Bank of Australia's less-than-expected 25 basis point interest rate hike, and climbs above a one-week high at the start of European trading. However, the intraday uptrend remains without follow-through buying and stalls just before the 0.6500 level.


The U.S. dollar continued its recent sharp correction from last week's two-decade high in the face of a further decline in U.S. government bond yields. Apart from that, the risk impulse continues to weigh on the safe-haven greenback, driving trade flows towards the risk-sensitive Aussie.


By and large, the AUD/USD pair traded within a narrow trading range last week. The range-bound price action forms a rectangle on the intraday charts and indicates the indecision of traders regarding the next leg of a directional move.


Against the background of the sharp decline from the monthly high in August, the formation could still be classified as a bearish consolidation phase. Moreover, the technical indicators on the daily chart, although recovered from lower levels, continue to move in the bearish zone.


This, in turn, suggests that the path of least resistance for the AUD/USD pair is to the downside and should urge bullish traders to be cautious. Nevertheless, some follow-through buying will reverse the bearish bias and set the stage for a meaningful upside move in the near term.


The AUD/USD pair could then build on the recent bounce from its lowest level since April 2020 and reclaim the round 0.6600 level. This is followed by the 0.6620-0.6625 resistance zone, above which a renewed short-covering move could lift spot rates to the 0.6700 level.

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page