- Australian Dollar is likely forming a double bottom pattern on the hourly chart against the US Dollar.
- If the highlighted double bottom pattern on the hourly chart is true, then the AUDUSD pair may surge moving ahead.
- Today in Australia, the Consumer Inflation Expectation released by the Melbourne Institute posted an increase of 3.6%, just as the last reading.
- Overall, if the AUDUSD pair clear the 200 hourly simple moving average, then a move towards 0.7151 is possible.
The AUDUSD pair traded down towards the last swing low of 0.6980 where it found support once again and started trading higher. This increased chances of it forming a double bottom pattern on the hourly chart.
If the pair moves higher and manages to break the 100, 200 hourly simple moving average and a bearish trend line, then more upsides are likely.
On the downside, an initial support can be around 0.7040, followed by the all-important 0.7000.
Australian Consumer Inflation Expectation
Today in Australia, the Consumer Inflation Expectation, which presents the consumer expectations of future inflation during the next 12 months was released by the Melbourne Institute. The outcome was unchanged from the last report, as the CPI expectation remained at 3.6%.
The report added that “February, the proportion of respondents (excluding the ‘don’t know’s) expecting the inflation rate to fall within the 0‐5 percent range increased by 3.3 percentage points to 75.4 percent from 72.1 percent in January owing to the rises in the clusters of responses around the expected price changes of 0 and 5 percent which offset the decline in the cluster of responses around the expected price change of 3 percent“.
In short, look for a break above the 200 hourly simple moving average for more upsides in the AUDUSD pair.