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The US greenback weakened notably following the newest CPI knowledge, exhibiting a larger-than-expected dip to three.2% in October. This decline, the primary in 4 months, sparked a surge in AUD/USD on Tuesday, pushing costs again into a vital resistance zone established since August (see each day candle chart beneath).
Wednesday’s worth motion noticed AUD/USD briefly break above the resistance zone earlier than retreating and shutting close to intra-day lows. This failure to carry above resistance has shaped a bearish fakeout sample.
AUD/USD Every day Candle Chart
Previous efficiency will not be a dependable indicator of future outcomes
Switching to the 4-hour candle chart (beneath) supplies a better have a look at Wednesday’s fakeout on the resistance degree, providing extra intricate particulars. This timeframe unveils a delicate but notable double prime reversal sample, complemented by detrimental divergence on the RSI. Nonetheless, we are able to additionally see the energy of momentum in Tuesday’s rally, and this could strike warning in AUD/USD bears.
AUD/USD 4hr Candle Chart
Previous efficiency will not be a dependable indicator of future outcomes
Threat Administration:
Merchants eyeing a brief place on AUD/USD may think about using Wednesday’s fakeout highs for cease placement.
Upcoming U.S. Preliminary Jobless Claims knowledge and U.S. Housing Begins knowledge might probably heighten volatility in USD forex pairs, influencing AUD/USD actions.
