Weekly Channel UP

There is a weekly channel UP on the AUDUSD, The weekly 20 EMA has held for the early stages of the trading week, with a lower than expected retail figures for January, and positive Current Account Numbers for Q4. We await the RBA interest rate announcement at 2:30 Pm today. It is anticipated to remain at 1.50%

On the lower time frames the H4 is no longer behaving as normal for a downtrend (no sharp rejection on H4 of the 20 EMA) and the 60 has formed a W double bottom. Historically when this pair is trending strongly it does not consolidate around the moving average, normally see a pullback rise to the 20 EMA followed by a one or two candle reversal away.

Fundamental factors: Uncertainty in markets over impact of US Tarrifs and a potential trade war. Upcoming RBA announcement of rates and Hawkish comments from Powell at the FED which may boost USD strength. Global uncertainty and sharemarket volatility may see a push to gold which has somewhat of a corelation to the Aussie.