In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUDUSD for 6th February 2024.
Key Takeaways
- U.S. economy remains resilient: The US ISM Non-Manufacturing PMI rose to four-months high of 53.4 in January, slightly above expectations of 52. New orders and prices indexes hit their highest levels in almost a year. Strong economic data has all but eliminated the possibility of a rate cut in March while the chances for May have also diminished. However, market risk appetite declined after the fact.
- Reserve Bank of Australia (RBA) policy meeting: RBA will announce its interest rate decision and monetary policy statement later today. Since last December, policymakers have discussed whether to raise interest rates again due to current economic progression in Australia. Nonetheless, inflation has begun to decline gradually albeit overall economic momentum diminished slightly. Due to such progression, investors will be on the lookout for forward guidance from RBA to gather more signals.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator formed bearish signal below midline, suggesting persistent selling pressure for the short-term.
- Moving Average: Following a rebound on January 18, the pair consolidated in between 65- and 200-day moving averages before slumping significantly last Friday and closing below both moving averages. It has also fallen below the previous low, suggesting an extension towards the downside.
- Price Action: The Harami pattern was formed last Friday, with recent formation of bearish candlestick provides further confirmation for downside bias.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator forms bullish signal near the oversold region along with the formation of bullish divergence signal. This suggests short-term upside bias for the time being.
- Upper resistance area: The pair plunges through descending channel, which signals further extension of downside bias. Nonetheless, with recent progression in terms of momentum and price action, we may see short-term upside prior to continuation of downside thereafter.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 0.6505,
- Bullish Scenario: Bullish sentiment prevails above 0.6505, first target 0.6520, second target 0.6535;
- Bearish Outlook: In a bearish scenario below 0.6505, first target 0.6465, second target 0.6450.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
