AUD/USD Signal Today – 02/05: Inverse H&S Pattern (Chart)

Bullish view

  • Buy the AUD/USD pair and set a take-profit at 0.6600.
  • Set a stop-loss at 0.6450.
  • Timeline: 1-2 days.

Bearish view

  • Set a sell-stop at 0.6480 and a take-profit at 0.6400.
  • Add a stop-loss at 0.6600.

AUD/USD Signal Today - 02/05: Inverse H&S Pattern (Chart)

The Australian dollar rebounded after the relatively dovish Federal Reserve interest rate decision. The AUD/USD pair surged to a high of 0.6540, which was over 1.15% above its lowest point this week.

US dollar index eases

The US dollar index retreated sharply after the Federal Reserve interest rate decision. In it, the bank decided to leave interest rates unchanged between 5.25% and 5.50%. It cited that inflation was still stubbornly high in the country.

Data released last month showed that the Consumer Price Index (CPI) rose to 3.5% in March while the Personal Consumption Expenditure (PCE) jumped to 2.5%. These numbers mean that inflation is taking longer than expected to move to the Fed’s 2% target.

The Fed also noted that it will start reducing the pace of quantitative tightening in June. It has been reducing its balance sheet since 2023, a move that has reduced its assets from almost $7.4 trillion. It will now trim the QT program to about $25 billion from the current $60 billion.

In his statement, Jerome Powell noted that the economy was still doing well, helped by robust consumer spending. That spending has been offset by a retreat in corporate spending in the country.

Most notably, the Federal Reserve announced that it will not hike interest rates this year since it believes that the current policy is highly restrictive.

The reaction to the Fed policy was swift as the US dollar index plunged. Government bond yields tumbled, with the ten-year fell to 4.62% while the 30-year dropped to 4.7%. American stocks bounced back, with the Dow Jones index rising by over 200 points.

Looking ahead, the next AUD/USD news to watch will be the US nonfarm payrolls (NFP) data. Economists expect the data to reveal that the economy added over 200k jobs in April as the unemployment rate remained at 3.8%.

AUD/USD technical analysis

The AUD/USD exchange rate bounced back after the Federal Reserve decision. It crossed the important resistance level at 0.6482, its lowest swing on April 24th and March 4th. The pair is hovering at the 50-period moving average.

Meanwhile, the Awesome Oscillator indicator has remained below the neutral point. The Relative Strength Index (RSI) has pointed upwards. Also, it has formed an inverse head and shoulders pattern, a popular bullish sign.

Therefore, the pair will likely continue rising ahead of the US jobs numbers. If this happens, the key point to watch will be at 0.6600.

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

Source link

Visited 1 times, 1 visit(s) today

Related Article

Ernakulam rural police examine mobile phones seized from counterfeit currency case accused | Kochi News

Kochi: Ernakulam rural police have intensified investigation into a suspected counterfeit currency network after recovering three mobile phones from a 62-year-old man who was arrested for circulating fake notes. The accused, identified as Abdul Rasheed of Pathanapuram in Kollam, was taken into custody by Kuruppampadi police on Thursday.Officers said the phones were also examined by

iQOO 15 unboxed ahead of launch, charging speed downgrade confirmed

iQOO will unveil the iQOO 15 on October 20 at an event in Shenzhen, China. The brand recently shared some pictures of the iQOO 15, revealing its color options and giving us a fair idea of the smartphone’s design. Now, the iQOO 15 has appeared in an unboxing video posted by AnTuTu on Weibo, which

When It Helps And When It Hurts

If you’ve ever wondered why some people sip espresso like water while others end up wired at 3 am, you’re not alone. Coffee divides people – sometimes within the same household – into those who thrive on it and those who suffer the consequences. Mic the Vegan, a popular science communicator with a Master of

iPhone 17 vs. iPhone Air Battery Test Showdown: I Just Crowned A New Winner

Key takeaways: The iPhone 17 Pro Max has outstanding battery life that easily lasts all day with charge to spare. Our exclusive lab data shows you don’t need to pay over a grand for excellent battery life. The $829 iPhone 17’s battery lasts just as long as the $1,099 iPhone 17 Pro. The ultrathin iPhone

The latest mobile hotspots deliver 5G to almost any device while sparing your phone’s battery – here’s why businesses won’t want to snooze on the newest technology

Qualcomm’s recent announcement of the Snapdragon X2 Elite shows that the company continues to strengthen its push to gain a foothold in Windows PCs., particularly as Nvidia pumps investment into a reeling Intel. The X2 Elite outperforms Qualcomm’s previous PC offerings in all the important key metrics. But there’s one feature from the company’s early

Oppo Find X9 series coming to India in November

During the annual India Mobile Congress this year, Oppo and MediaTek announced that the Find X9 series will be the first smartphone lineup to feature MediaTek’s latest and greatest Dimensity 9500 SoC, which was announced in late September. That bit isn’t particularly new information, though. The interesting bit about the announcement is that the Find

Headlines from the Coffee Industry

Our recurring round-up of the latest specialty-coffee industry news. FROM STAFF REPORTS Featured image by Joshua Earle World Coffee Research Recognized in TIME Magazine’s Best Inventions of 2025 World Coffee Research has announced that their Innovea Global Coffee Breeding Network was named a Best Invention of 2025 by TIME Magazine. Launched in 2022, Innovea a

Domestic Violence Awareness: Waukesha coffee shops help spread word

WAUKESHA, Wis. – Coffee is serving as a conversation starter in Waukesha County during Domestic Violence Awareness Month.  Conversation starter What we know: It is a sobering reminder every October from The Women’s Center. Seventy-one people have been killed in Waukesha County acts of domestic violence since 1992.  Advocacy specialist Mo Dempsey said there was

Samsung Galaxy Tab S11 Ultra review

Introduction The Galaxy Tab S11 flagship series premiered at Berlin’s IFA this year and it is available in two sizes – the 11″ Tab S11 and the 14.6″ Tab S11 Ultra. Today, we will explore the larger of these slates, the most premium Samsung tablet right now – the Galaxy Tab S11 Ultra. Thin and

The Best Stovetop Espresso Maker for Design Enthusiasts (2025)

As you know, coffee is life in Italy. But you can still have la dolce vita stateside with the best stovetop espresso maker. Unlike espresso machines that can take up precious counter space, this type of model is typically the size of a tea kettle. The secret to making a great Italian coffee is rooted

Honor’s new teaser details the Magic8 Pro’s telephoto camera

Honor has released some new teasers about its upcoming Magic8 Pro, and specifically about its 200 MP telephoto camera. This will have a 1/1.4″ type sensor, the AIMAGE Honor Nox Engine, a large f/2.6 aperture, and, according to the brand, the industry’s first CIPA 5.5-stop image stabilization. This should handle hand shaking without issue as

Lawmakers Introduce Bipartisan Bill to Prohibit Student Cellphone Use in Pennsylvania Schools

Legislation responds to alarming declines in youth mental health, academic achievement, and social engagement.  HARRISBURG – Citing the steep decline in youth mental health and academic performance during the past decade, Sens. Devlin Robinson (R-37), Vince Hughes (D-7), and Steve Santarsiero (D-10) today announced the introduction of bipartisan legislation requiring Pennsylvania schools to adopt policies

0
Would love your thoughts, please comment.x
()
x