In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the AUDUSD for 21^st MAY 2024. 

Key Takeaways 

• RBA meeting minutes: Reserve Bank of Australia maintained its interest rates at a 12-year high of 4.35%. The central bank raised its inflation outlook, removing the possibility of a rate cut for the year before mid-2025.  
• Hard to raise interest rates: Australia’s unemployment rate increased significantly with the reduction of full-time employments. While shrinking labor market may indirectly keep good prices at low levels, it could undermine the idea of the central bank to raise interest rates further to curb inflation.  
• Commodities support the AUD: Due to the differences between Australia’s monetary policy and other central banks, the interest rate differential supports the trend of the Australian dollar, and the recent rise in commodities such as copper mines may increase the probability of further appreciation of the Australian dollar. 
• Due to divergence of policy between Australia and other central banks around the world increased the demand for Australian dollar, which further buoyed by rising prices of copper. 

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator issued bearish signal at the overbought region, suggesting possible downside ahead for short-term.  
• Uptrend line: Following consolidation for three trading days, the pair may likely inch towards the trendline, in which a breakout may lead to major shift in trend direction.  

4-hour Chart Analysis 

• Stochastic oscillator: The indicator halted its bearish signal, with a sharp turn and imminent formation of bullish signal. However, we advise vigilance and to wait for a breakout before entering the market.  
• Support price: The pair oscillates with low volatility within the formation of downward channel. For the time being, it is testing near the moving average line, in which a successful rebound may lead to further appreciation in price thereafter.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 0.6690, 
• Bullish Scenario: Bullish sentiment prevails above 0.6690, first target 0.6710, second target 0.6725; 
• Bearish Outlook: In a bearish scenario below 0.6690, first target 0.6645, second target 0.6630. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

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Disclaimer   

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