July meeting minutes to be released later today
The AUDUSD has a bit of the ups and downs of late, but is finding lower sellers on rallies and lower lows over the last few trading days.
What are the charts saying?
Hourly.
You can see the ups and downs from this chart. The last move has been higher but stalled a the topside trend line. The low from July 8th at 0.7371 may be soften the pair again. On a move above the trend line, patient sellers will look toward a cluster of resistance levels that extend up to 0.7418 where the 200 hour MA is located. Since July 6th the AUDUSD has been below the 0.7500 level which was the old perceived floor for the pair (as per Governor Stevens projection from December). Traders will be looking for that break (higher or lower) in the new trading day.
Monthly
Looking at the monthly chart, if the price continues to follow the low road, look for the 0.7279 trend line to be the next key target. The level is where the lower trend line going back to the pair comes down to 0.7282. Keep the level in mind. The low for the month reached 0.7326. A break below that level and traders will be looking for 0.7000.
Later today, the minutes from the July meeting will be released. The RBA kept rates unchanged at the time.
What is iron ore doing?
The AUDUSD can keep an eye on the price of iron ore as a barometer of China demand. The price has been trending lower and lower. However, it did reach a new low on July 8th at the 44.59 level but has since rebounded to 52.39. That should be supportive for the AUDUSD all things being equal. Just a thought.
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