Analysis of the Australian dollar pair
Fundamental analysis
The Australian dollar pair rose during today's trading on Monday in light of the scarcity of economic data today at the beginning of the week.
However, we are waiting for important data during this week's trading, starting at dawn tomorrow, where we will have the Australian interest rate decision and expectations of its stability at 4.35% , which gives the Australian currency some strength against most currencies, as most currencies have started to cut interest rates, but the Reserve Bank of Australia still supports the idea of stabilization, as inflation is not approaching the bank's targets.
On the other hand, we are waiting for inflation data from the US economy on Wednesday, represented by the US Consumer Price Index, which will largely determine the Fed's outlook during next week's meeting.
Technically:
The Australian dollar rebounded from the uptrend levels on the daily frame after the pair completed the harmonic Shark model and we still expect a further rise towards the downtrend levels at approximately 0.6480 levels.
We expect that if it breaks through and closes the highest candle today, the pair will continue to rise towards the levels of 0.6550 and then 0.6620.
The scenario fails in the event of another close inside the trend and it is preferable to use a precautionary stop due to the presence of interest data at dawn today.
