The Australian Dollar (AUD) rose against the U.S. Dollar (USD) last week, increasing the price of the AUDUSD pair to more than 0.7700, ahead of the release of U.S. Consumer Price Index news.
Technical Analysis
As of this writing, the AUDUSD pair affirms around 0.7774. While moving upward, the pair might face some resistance near the given below price levels.
Short-Term Resistance Levels
0.7817 – the high of April 25, 2021
0.7900 – the psychological level
0.8004- the major horizontal resistance
Source Image: MetaTrader4
On the downside, the pair might find some sustainability near the listed price levels.
Short-Term Support Levels
0.7655 – the immediate trendline support
0.7585 – the low of April 11, 2021
0.7500 – the psychological number
U.S. Consumer Price Index News
The US Department of Labor Statistics is scheduled to release numbers for the U.S. Consumer Price Index Ex Food & Energy news. According to economists, the U.S. Consumer Price Index EX Food and Energy news might remain unchanged in April, with a reading of 0.3%, as compared to the reading of 0.3%, in the month before.
Stats for the U.S. CPI Ex Food & Energy reflects price movements between the retail prices of goods and services selected from representative shopping baskets of different stores on a sampling basis. It is worth mentioning that the CPI does not include the prices of volatile products such as food and energy to avoid biased figures. Generally speaking, a high reading for the U.S. CPI suggests a bearish trend for the AUDUSD pair and vice versa.
Conclusion
Considering the price movement of the pair over the past few days, it may be a better option in the short term if the AUDUSD was bought around 0.7655. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.