AUD/USD Forex Signal: Death Cross Points to More Downside – 25 November 2024

Bearish View

-- Sell the AUD/USD pair and set a take-profit at 0.6400.
-- Add a stop-loss at 0.6700.
-- Timeline: 1-2 days.
Bullish View

-- Set a buy-stop at 0.6510 and a take-profit at 0.6600.
-- Add a stop-loss at 0.6400.
The AUD/USD exchange rate moved sideways ahead of key economic data from the United States and Federal Reserve minutes. It was trading at the important psychological level of 0.6500, a few pips above last week’s low of 0.6443.

[geotargetedbrokercarousel]

Fed Minutes and Key Data Ahead

The AUD/USD pair will likely see some volatility this week as the US releases several important economic numbers. The first report will come out on Tuesday when the Conference Board publishes the latest consumer confidence data.

Economists polled by Reuters expect the data to show that confidence rose from 108.7 in October to 110 this month. A higher confidence figure is a positive sign for the American economy.

The other data on Tuesday will be on housing, where the US will publish the latest house price index and new home sales numbers. Home sales and prices have been fairly stable in the past few months, helped by resilient demand.

The Federal Reserve will publish minutes of the last monetary policy meeting on Tuesday. Historically, this statement usually comes out on Wednesday, but it will come earlier because of the Thanksgiving holiday.

The minutes will provide more information on what to expect in the coming meetings. The bank decided to cut interest rates by 0.25% in the last meeting in a bid to engineer a soft landing for the economy.

Since then, the view among investors and analysts has changed, with most of them expecting the bank to hold rates steady in its last meeting in December.

The other key data to watch will be the US PCE report on Thursday. This is crucial data that showed changes in prices in both rural and urban areas and is the Fed’s favorite inflation report. There will be no major economic releases from Australia.

AUD/USD Technical Analysis

The daily chart shows that the AUD/USD exchange rate peaked at 0.6942 in September and has been in a steady downtrend since then. It dropped to a low of 0.6443 earlier this month after Donald Trump won the election.

[graph_5760]

The pair has even formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have formed a bearish crossover. It has also dropped below the key support at 0.6625, its lowest point on September 11.

Also, the MACD indicator has dropped below the zero line, while the Relative Strength Index (RSI) has moved below 50. The pair will likely resume the downtrend as sellers target the psychological point at 0.6400.

Ready to trade our ;free trading signals? We’ve made a list of the ;top forex brokers in Australia ;for you to check out.

Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.