The Aussie dollar resumed its climb higher early this week after the RBA Meeting Minutes gave the market an unchanged view in forward guidance, the major pair was trading around 0.7280 before the release and has since risen to a high of 0.7335 in the session, breaking through short term resistance just above 0.7300. The focus will remain on the big dollar side of the equation as we approach the crucial Fed meeting later in the week as well as the progress of major commodities and overall risk sentiment.
The pair broke through initial short-term resistance at 0.7300 earlier today and now the earlier high at 0.7335 will provide the next target. Above this, the next resistance level on the hourly chart sits up at the yearly high at 0.7413. Initial short-term support comes in at 0.7300 the previous resistance level with the support trend line now coming in just above 0.7250.
The Aussie is once again grinding higher in a pennant with the trend line resistance now coming in around 0.7400, just below the recent yearly high at 0.7413. Longer term resistance is still up near the 0.7635 level. Initial trend line support is coming in around the 0.7250 level (coinciding with a similar level on the hourlies) with further support under that coming in much lower near 0.7074 – the August low, before we look much further down to a strong consolidation zone near 0.6800.