The AUD/USD spiked to a new yearly high of 0.9091 following the surprise rate hike by the RBA. Increasing optimism and prevailing risk appetite may keep the pair supported but a speculation that the U.S. may step up their timetable for tightening may leave the pair range bound over the near-term making it attractive for scalpers.
Key Technical Levels
The break above 0.9000 has led to tight price action over the past few days which could be a sign that the pair may settle into defined range. We have seen over the past year that rally’s have been followed by periods of consolidation as the AUD/USD has incrementally put together a period of prolonged appreciation. The break of such a significant psychological level and the sharpness of the recent rally increase the chances that a period of low volatility is ahead.
Quantitative Metrics
A widening Bollinger band and rising ATR are negative signs for scalpers and should proceed with caution when trading this pair. A Implied volatility of 15.04 also detracts from its attractiveness which leaves depending on recent price action as the sole basis for selecting this pair.
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