RBA Stevens next central banker to testify
The Yelllen marathon is over. Up next is RBA governor Stevens who is scheduled to testify to the Parliamentary Committee at 5:30 PM ET/2130 GMT. Eamonn has penned a preview HERE.
So what technical levels are of importance for the AUDUSD through the headlines and Q&A?
Looking at the daily chart, the AUDUSD rallied up to trend line resistance in last week's trading (on Thursday). Sellers entered against the level. This was the 3rd test of the declining trend line. The level comes in lower this week at 0.7217. Key level on the topside.
Before that level is the 100 day MA at 0.71399. This level was taken out in trading today with the high price extending to 0.7152. However, the move above was over in less than 15 minutes today. Last week, the price broke above this level on the way to the trend line resistance (see hourly chart above), but a day and a half later, there was an equally as fast break back below.
If the comments are somewhat "less dovish" traders will be looking for momentum on a break.
On the downside, the 50% of the move up from the Jan 20 low (double bottom) comes in at 0.70349. A move below that level will be step one in a potential move lower. The two lows this week at 0.6973 and 0.6983 are the next lows to eye. Those last two lows were fairly quickly retraced. As a result, if the downside is going to be explored further, those levels will been to be broken, and stayed broken. From there, traders will look toward 0.6918-27.
