Technical Analysis

AUD/USD Price Analysis – March 28, 2023

By LonghornFX Technical Analysis
Mar 28, 20232 min

Daily Price Outlook

The AUD/USD pair surged after breaking the crucial 0.6660 resistance during the Asian session, now aiming for the 0.6700 round-level resistance. The US Dollar index (DXY) is facing turbulence as it extends its correction to around 102.60, with no signs of recovery.

S&P500 futures gained in the Asian session following a three-day winning streak, reflecting strong risk appetite among market participants due to restored household confidence.

Demand for US government bonds rebounded after a sell-off on Monday. Investors offloaded US government bonds following positive headlines about liquidity assistance to small US banks after three banks failed. Consequently, the 10-year US Treasury yields dropped to around 3.51%.

The US government announced emergency liquidity assistance for small lenders after the failure of three mid-sized banks led to a loss of confidence among households. The US Dollar has been impacted by the government's efforts to restore confidence in the banking sector.

The investment community is divided over the Federal Reserve's next move regarding interest rates. More than 50% of investors, according to the CME Fedwatch tool, prefer maintaining the status quo in the May monetary policy meeting due to tight credit conditions affecting US inflation.

Australian Retail Sales data showed a weaker-than-expected expansion of 0.2%, indicating the burden of higher inflation on households. This situation, however, is favorable for the Reserve Bank of Australia (RBA), which aims to soften stubborn inflation. The upcoming monthly Consumer Price Index (CPI) release will be closely watched.

 AUD/USD Price Chart - Source: Tradingview

AUD/USD Intraday Technical Levels

Support      Resistance

0.6678          0.6742

0.6640          0.6768

0.6614          0.6806

Pivot Point: 0.6704

AUD/USD – Technical Outlook

The AUDUSD pair oscillated around the 0.6665 level yesterday and started today with positive momentum, attempting to hold above this level.

This hints at the possibility of halting the bearish correction and moving towards a recovery in the upcoming sessions, opening the path for gains beginning with a target of 0.6780.

We anticipate positive trading in the upcoming sessions, but the price must establish a strong support base above 0.6665 to confirm the continuation of the bullish trend.

Failing to do so would halt the positive scenario and push the price to resume the bearish correction with a next target of 0.6550.


    * GOLD Price Analysis – March 28, 2023

    * NASDAQ Price Analysis – March 28, 2023

    * AUD/USD Price Analysis – March 21, 2023


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