The Australian Dollar (AUD) rose against the US Dollar (USD) on Monday, increasing the price of AUDUSD to more than 0.7350 ahead of the Reserve Bank of Australia’s monetary policy minutes. The technical bias shall remain bearish because of a lower low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded around 0.7397. A hurdle can be noted near 0.7438, an immediate horizontal resistance level ahead of 0.7483, the trendline resistance as demonstrated with red and black colors in the given below chart and then 0.7500, a key psychological level. A break and hourly closing above the 0.7500 resistance shall incite renewed buying interest, validating a move towards the 0.7620 resistance zone.
On the downside, a support can be noted around 0.7334, an immediate trendline support ahead of 0.7300, the psychological number and then 0.7231, another trendline support as demonstrated with pink color in the given above chart. The technical bias shall remain bullish as long as the 0.7231 support area is intact.
How AUDUSD Reacted on Past RBA Minutes?
Last time the RBA released its minutes on 18 April 2017. The AUD/USD pair fell broadly after the release of minutes as the central bank painted a fragile picture of the economy.
The pair, however, rose by more than 50 pips after the release of March 2016 RBA minutes as the central bank signaled no rate cut in near future.
Trade Idea
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.
What Assets to Trade
In addition to AUD/USD, trading EURAUD, AUDJPY, GBPAUD and AUDCHF can be a good strategy as the aforementioned pairs are highly reactive to the RBA monetary policy announcement.
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