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AUD/USD Today Technical Report 05/04/2016

AUD/USD traded somewhat higher during the early European morning Tuesday after the Reserve Bank of Australia decided to leave interest rates unchanged. The pair rebounded from the support of 0.7570 (S1) and the upside support line taken form the low of the 16th of March. The price structure on the 4-hour chart remains higher peaks and higher troughs, something that keeps the short-term outlook positive. As a result, a clear move above 0.7645 (R1) would confirm the continuation of the rebound and perhaps aim for another test near the 0.7700 (R2) zone. Looking at our short-term oscillators, I see that the RSI has turned up again and looks able to move back above 50, while the MACD shows sings that it could start bottoming near its zero line. As for the broader trend, on the 4th of March the pair emerged above the upper bound of the wide sideways range it’s been trading since mid-July. As a result, I would consider the medium-term outlook to be positive as well. However, a break above the 0.7700 (R2) is the move that would confirm a forthcoming higher high on the daily chart.

AUD 05

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