AUD/USD Awaits Economic Data

Bollinger Bands Indicate Neutral Stance

The AUD/USD currency pair, representing the Australian Dollar against the US Dollar, is poised for potential movement with today’s upcoming US economic releases. The CB Leading Index m/m is forecasted at -0.3%. This index, derived from ten economic indicators related to employment, new orders, consumer confidence, housing, stock market prices, credit trends, and interest rate spreads, is designed to predict the direction of the economy. However, its impact might be muted since most of its components have been previously released. Additionally, speeches from FOMC members Waller and Daly are expected. As voting members of the Federal Reserve, their comments on monetary policy could provide subtle clues about future interest rate decisions, potentially influencing the USD. Traders will be attentive to any hawkish signals that could strengthen the US Dollar.

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

The AUD/USD technical analysis on the H4 chart shows a mixed trend with significant indicators providing insight. Over the past 10 candles, 5 were bearish, including the last two, indicating a recent shift towards selling pressure. The candles have been moving towards the middle line of the Bollinger Bands, suggesting a return to a more neutral position after previously testing the upper band. This movement within the Bollinger Bands indicates reduced volatility and potential consolidation. The RSI stands at 54.45, indicating a neutral market stance with no immediate overbought or oversold conditions. This balanced RSI further supports the likelihood of a consolidation phase. The recent bearish candles and proximity to the Bollinger Bands’ middle line suggest that traders should be cautious and watch for potential breakouts or further consolidation.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.