The Reserve Bank of Australia (RBA) interest rate decision is on tap tonight and Aussie is trading right in the middle of a multi-month consolidation pattern we’ve been tracking for weeks now. Here are the updated targets and invalidation levels that matter for AUD/USD[1] heading into the release. Review this week’s Strategy Webinar[2] for an in-depth breakdown of this setup and more.
AUD/USD Daily Price Chart
Technical Outlook: In my Weekly Technical Perspective on the Australian Dollar[3], we highlighted that the, “broader short-bias is vulnerable while above 7327. From a trading standpoint, we’re looking for a break of the 7327-7505 range for further guidance.” Aussie has continued to consolidate within the confines of the initial June opening range[4] with major event risk on tap this week.
Resistance stands with the July trendline[5] / May low-day close around ~7445/56 with critical support steady at 7327- a break / close below this level would exposes subsequent support objectives at 7230 and the 2017 open at 7200. Ultimately a breach above 7494 would be needed to suggest a more significant low is in place.
New to Forex Trading? Get started with this Free Beginners Guide[6]
AUD/USD 240min Price Chart
Notes: A closer look at AUD/USD price action further highlights this consolidation pattern with the lower bounds of the range now converging on the key 7327/36support zone[7]- a region defined by the yearly low-day close and the 61.8% retracement of the 2016 advance. A downside break targets 7298
