We normally do not cover AUDUSD but the combination of yesterdays bounce and Australian Wage Price Index at 0130GMT is very interesting. Consensus forecast for WPI is at 0.9% quarter-on-quarter and should we push above it justifies a pop higher in the charts. Consider that unlike other central banks where the calls are for an easing, the RBA raised rates as recently as November with little expectations of an easing. It would be interesting to compare Australian Wage Inflation with US Consumer Prices later, an apples to oranges situation.
Resistance
- 0.66675 – Range Play High for 2024
- 0.66481 – Daily Consolidation High
- 0.66287 – Intraday Descending Triangle
Support
- 0.65976 – Intraday Consolidation Floor
- 0.65781 – Tuesday’s Low
- 0.65575 – Double Top Trigger
AUDUSD looks very interesting with multiple scenarios happening at the same time. We could be at the second top of a daily double top pattern, In the 4H scale we have a pennant forming, typically a continuation pattern. From indicators we have an overbought stochastic in both daily and 4H charts which combined with the resistances suggests it would be difficult to see a push higher with out a trigger. And then we have Australian inflation metrics that could be the catalyst to break higher. Note failure to get a pop up from Wage price index would have us looking for long wick or bearish engulfing candles in the hourly charts to consider shorting.
