Daily Market Forecast By Capitalcore

[Capitalcore]

AUD USD Approaches Critical Bollinger Band Resistance

AUD/USD, also known as the "Aussie," is a prominent forex pair representing the Australian Dollar against the US Dollar, popular among traders for its liquidity and responsiveness to commodity prices and economic data. Today, traders should closely monitor key economic indicators: Australia's Balance of Trade and Monthly Household Spending Indicator (MHSI), as well as US Jobless Claims, Job Cut Announcements, and Natural Gas Inventories. Positive Australian trade and spending data could strengthen AUD, while better-than-expected US employment figures would bolster USD, influencing the pair’s volatility significantly. Additionally, market participants should pay attention to Federal Reserve Governor Michelle Bowman's speech, as any hawkish indications could further support USD.

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Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the AUD/USD H4 chart, previously the chart was moving along a steady bullish trend; however, recent price action has begun showing signs of consolidation, trading along the Bollinger Bands (60). Currently, the bands have expanded, suggesting potential increased volatility. Given that the price is approaching a critical resistance zone around 0.6607, which aligns with previous highs, the pair could experience selling pressure. If resistance holds and candles retreat, a move toward the middle Bollinger Band at 0.65112 is plausible. Indicators such as Williams %R at -0.62 and the Stochastic oscillator at 99.38, 97.46 indicate overbought conditions, reinforcing the likelihood of a corrective pullback.

•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

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