AUD/USD is in a strong uptrend on its short-term and long-term time frames but it appears that buyers need to regain energy before pushing the pair higher. In the 4-hour chart, the Fibonacci retracement tool shows that the pullback could take place until the 50% to 61.8% Fib levels, which are in line with the rising trend line connecting the lows of the price.
Take note that this is also in line with an area of interest, as evidenced by the previous consolidation towards the end of March. A bounce from the .9250 minor psychological support level might take place this week, as traders book profits off their Aussie shorts ahead of the top-tier market catalysts.
Bear in mind that the US will release its advanced GDP reading as well as its April NFP figure this week. Also scheduled are the FOMC rate statement and Fed Chairperson Yellen’s speech. Second-tier events include the ADP non-farm employment change and the ISM manufacturing PMI.
This amount of volatility could lead to a resumption of the ongoing trends, but do be careful of the risk aversion that might be caused by the escalating tension in Ukraine.
By Kate Curtis from Trader’s Way