AUD/USD is trading in an uncomfortable zone. The RBA kept the benchmark interest rate unchanged at its March meeting. We have seen numerous efforts from the RBA to weaken its currency, which it believes has become too strong and is damaging the economy. Traders are paying lots of attention towards the monetary policy meeting minutes going to be released on Tuesday.
Technical view-
Bearish view-
The pair is struggling to close above the high of 0.9085 set January 13 in the weekly and daily charts.
It is facing stiff resistance at the 38.2 Fib level in the daily chart.
In the weekly chart, the pair is trading near the descending trendline. Major trend change setup here.
Until the price closes above the 0.9085 level, sell on the rise.
It failed to give a breakout of Rising wedge formation.
Bulls view-
The pair is successfully holding above the short-term averages.
In the hourly, daily, and weekly charts, RSI gives a positive direction.
The area between 0.8922-0.8890 is the support zone, below which more weakness persists in the trend.
Between 0.9152-0.9166, there is the resistance zone, above which 0.9246 is the target.
Recommendations-
Intraday- Buy above 0.9025 for a target at 0.9095. If the price is unable to cross the level 0.9025, it will drift lower towards 0.8979.
Positional weekly- Sell until the price closes above the level of 0.9085, the first sign of weakness will be below 0.8923, more weakness is on the cards only below 0.8890 towards 0.8730 and 0.8659.
