The Australian Dollar hits a wall (of resistance) – Can we expect a correction?

October 12, 2021 - 2 weeks ago
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On Monday, the Australian Dollar rise extended to the challenge of US$0.7365 after posting a fresh 4-week high of US$0.7365, before paring of some gains.

Soaring copper prices and a rebound in iron ore has supported the modest rise for the AUD/USD currency pair.

Looking ahead, our attention turns to the Key U.S. inflation data (U.S. CPI) on Wednesday, along with the FOMC minutes, while Thursday’s looks to the Australian unemployment release, which holds to a forecast of -135.0K and the unemployment rate is expected to increase from 4.5% to 4.8%.

Based on the daily technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator holds a positive signal, while the Moving Average Convergence Divergence (MACD) is positive.

The Average Directional Movement Index (ADX) trend indicator holds a to a weak bull trend.

From the US$0.7365 retreat, bearish eyes now look for the US$0.7315 break, which could follow lower to the support viewed at US$0.7270.

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