AUD/USD slid to $1.0480 after low domestic home-loan approvals and negative Chinese trade data.
Last Thursday the pair has tested a two-month high at $1.0515, but failed to fix there. Offers clustered around $1.0500/15 remain a hurdle for bulls: on Friday investors demonstrated indecisiveness.
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We expect the pair to continue the uptrend. On the weekly chart one may see a bullish engulfing pattern – a positive sign. On the hourly chart the pair is forming a triangle pattern - a break above the upper boundary would open the way towards $1.0560 (2011 and 2012 maximums). Below the lower boundary of the triangle we expect a correction to $1.0440/00. Strong support is seen at $1.0400/$1.0390.
Resistance: $1.0500, $1.0515, $1.0560
Support: $1.0465, $1.0440, $1.0390 (100-day MA, daily Ichimoku)
Watch the US Fed meeting results on Wednesday. Regulators may announce policy easing and weaken the greenback.