Could We See A Correctional Move in AUD/USD?

The Aussie jumps in early Monday’s trading, supported by upbeat Chinese data and tomorrow morning we expect RBA to leave the rate unchanged.

The first bullish target siting at 61.8% Fibo on the fall of 0.7082 to 0.6670 at 0.6828. Daily Stochastic indicator emerged from oversold zone after forming bullish divergence that adds to supportive factors. On the upside, a move above 0.6800 key resistance will turn intraday bias neutral and bring consolidation, before staging another decline.

On downside, the 0.6750/00 level underneath is a massive support level, and at this point it’s very likely that we will continue to see that area hold. If the price break below it, there it would be a catastrophic event for the Australian dollar, perhaps reaching down to the 0.65 handle.

Have in mind that the pair is extremely slow according ATR, so it could take some time for a move to develop! Till than the pair will continue trading in a range.

What do you think?