AUD/USD To Retrace Higher Over Time?NOTE -
Long side Blue arrow is now a representation of the speed of any rally. Price may also stop earlier than this various times (See below).
Persistent USD strength has come after both inflationary data and the inflationary effect the Trump administration may have.
Inflows into the USD are most easily reflected on the Dollar Index (DXY). You can see across the board larger hits on Risk currency assets (NZD/AUD/CAD) as well, VS EUR / GBP.
Current price rejection at lows does not exist despite flickers of hawkish bias coming out of the RBA. The over-ruling Market sentiment at the moment is all about the USD and its harsh strength.
I would expect over time this to fade especially at key levels (as it has historically). Key long zones approach both current and lower, but given current price action falls lower would also not surprise me.
Looking ahead to further news sentiment through this week and direction of price.
Would be willing to scale in at lows. Somewhat slight uptrend over the last year may persist, but bear in mind long term trend still suits a strengthened USD as the US economy advances on the world stage, outperforming other areas.
May be wise to set targets at key early resistance levels as noted based on sentiment now.