Technicals and Fundamentals push AUD higher
19 July 2022
Today’s RBA meeting minutes happened to be much hawkish than expectations. It was said that there is still room for the rises, which was positively received by the market participants.
Hawkish RBA along with the great data from the Australian job market was a sweet combination for the local traders and a great fundamental support to an interesting technical setup.
AUDUSD has now a full, proper buy signal. It is coming from the inverse head and shoulders pattern (yellow), which emerged in July. Formation is already up and running, as today, the price broke its neckline (blue). Apart from breaking the neckline, the price broke also two down trendlines (red and black), so I guess that buyers have all what it takes to pull the price higher in the next few days.
Sentiment is positive, as long as the price stays above the blue neckline. Drop below is of course possible but is not really probable but if it would happen, the buy signal would be cancelled.