A somewhat dovish set of RBA meeting minutes and a round of negative risk sentiment (likely on the renewed possibility of a no-deal Brexit) has pushed AUD/USD lower to now test an area of broken resistance. The area around 0.6850 held off the bulls earlier in the month before being easily broken last week, so will it attract the bulls now? We don’t know, but with potential catalysts from upcoming Fed speak and more Australian economic updates later, there is a possibility that we could still see volatility for the time being.
If you’re a bull on the pair, the stochastic indicating oversold conditions at a strong area of interest is very attractive. And if we do see some dovish comments from Fed officials combined with a disappointing Australian leading index (maybe even some bullish U.S.-China trade developments), then this pair looks good to go for a short-term long positions, which the more attractive entry down around the major psychological level of 0.6800.
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