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AUD/USD Seeking to Break Above Triple Top - Who's Up for Buying?


The AUD/USD pair was closed at 0.65366 after placing a high of 0.65847 and a low of 0.65096. Overall the movement of AUD/USD pair remained bullish throughout the day. The AUD/USD pair moved in a tight range on Tuesday amid the RBA meeting minutes offered no surprises, and the US dollar remained weak due to risk-on market sentiment. On the back of USD weakness, the AUD/USD pair touched its highest level in 8 days at 0.6584.

The testimony of Fed's Chair Jerome Powell and Treasury Secretary Steve Mnuchin before the Senate Banking Committee allowed the AUD/USD pair to move in the consolidation phase. Fed and Treasury provided details about the stimulus package provided by the US government on how to use it against the coronavirus's impact on the economy. Treasury remained optimistic over the quick economic recovery while Powell suggested more aid would be needed if lockdown remains there for some more months.

On the other hand, US-China trade disputes were continuously increasing due to back to back accusations on China from the US. The market sentiment was already disturbed due to US-China trade war fears that were more disturbed after a new trade war between China and Australia emerged.

China said on Monday to impose 80% tariffs on Australian Barley, and the Australian trade minister on Tuesday has said that they do not want a trade war with its largest trading partner. He added that China was punishing Australia for advocating an investigation into coronavirus pandemic origin.

Trade Minister Simon Birmingham said on Tuesday that "Australia is not interested in a trade war. We don't pursue our trade policies on a tit-for-tat basis, and we operate according to the trading rules that we strongly support."

Technically, the AUD/USD pair is crossing over triple top resistance level of 0.6567, and bullish crossover of this level could trigger buying until the next target level of 0.6615 level today. However, the AUD/USD pair must give us closing above 0.6565. Closing below 0.6565 level may cause a selling until 0.6515 area today. Let's keep an eye on the triple top breakout to enter a buying trade today. Good luck!

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