Australian Dollar bulls take the exit door – Bearish outside range day posted – confirmation awaits

October 22, 2021 - 1 month ago
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The Australian dollar bullish sentiment took a detour on Thursday and opened back below the US$0.7500 handle, and since the move has struggled to recapture renewed gains.

The AUD/USD extended its recent uptrend this week and inked in a fresh intraday and four-month highs at US$0.7540, amid signs the RBA may be wavering in its commitment to uber accommodative interest rates until 2024.

Looking ahead today, the RBA governor, Dr Philip Lowe, is scheduled to participate in a panel discussion about central bank independence, mandates, and policies at an online event hosted by the University of Chile.

The New York close has posted a bearish outside range day that awaits confirmation based on the technical assessment.

That confirmation would be a close beneath US$0.7445.

If confirmed, it should provide a measure move towards the US$0.7345.

The Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has buckled, while the Moving Average Convergence Divergence (MACD) holds a positive signal, and the ASX holds to a positive trend.

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