AUD/USD PRICE OUTLOOK: AUSTRALIAN DOLLAR PROBES KEY SUPPORT LEVEL AS RBA DECISION LOOMSAUD/USD value motion knocks on the door of
AUD/USD PRICE OUTLOOK: AUSTRALIAN DOLLAR PROBES KEY SUPPORT LEVEL AS RBA DECISION LOOMS
- AUD/USD value motion knocks on the door of 0.7000 as soon as extra forward of the RBA determination
- Australian Greenback bulls have defended this important technical help degree with fading conviction
- The Aussie reveals potential to proceed carving out its bearish descending triangle sample
The Australian Greenback seems to be teed up for one more turbulent week. AUD/USD implied volatility simply clocked its highest studying since mid-June, however expectations for elevated market exercise comes as little shock when contemplating the plethora of occasion threat outlined on the financial calendar. Essentially the most distinguished menace confronted by the Australian Greenback will possible be the upcoming RBA determination due Tuesday, 03 November at 03:30 GMT. Potential for heightened AUD/USD value volatility this week additionally seems to be exacerbated by counterpart drivers such because the US presidential election.
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Introduction to Foreign exchange Information Buying and selling
AUD/USD PRICE CHART: DAILY TIME FRAME (27 MAY TO 02 NOV 2020)
The Reserve Financial institution of Australia lately conveyed an more and more dovish tilt relating to its financial coverage stance, which helped gasoline Aussie promoting strain as market contributors priced in expectations for a 10-basis level rate of interest minimize. In response to in a single day index swaps, the likelihood that the RBA cuts its coverage rate of interest this week at present stands at round 80%. Affirmation of this expectation may ship AUD/USD value motion snapping again to the 0.7000-level.
| Change in | Longs | Shorts | OI |
| Each day | 3% | 32% | 16% |
| Weekly | 13% | -4% | 4% |
That stated, Australian Greenback bulls would possibly proceed to defend this important technical help zone contemplating RBA dovishness seems largely priced in. The Aussie additionally appears to be discovering buoyancy supplied by its backside Bollinger Band. Correspondingly, it appears most certainly that the Aussie-Greenback will proceed to carve out and oscillate throughout the confines of its bearish descending triangle sample. If AUD/USD bears breach the 0.7000-price degree, nevertheless, there may very well be potential for promoting strain to speed up towards the 200-day easy shifting common.
Hold Studying: US Greenback Forecast: Technical Ranges to Watch as Election Looms
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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