The European Central Bank (ECB) and Reserve Bank of Australia (RBA) will be under the spotlight this week with their policy rates announcement. RBA will most likely be hawkish with a new potential hike in view after China reopening and after recent solid GDP numbers from Australia.
Stocks and commodities moving higher will lift the aussie. From an Elliott wave perspective, we see nice five waves up from May lows, followed by a recent slow down last week, after US nonfarm payrolls, so the pair can be finally headed south for a three-wave (A)-(B)-(C) pause which can be an excellent opportunity for traders to join the uptrend. I am looking for the support at 0.7125 followed by 0.700/0.7020 area.
