Sunday, December 8, 2019
Home > Posts > Technical Analysis – AUD/USD

Technical Analysis – AUD/USD

AUD/USD Daily 28 FEB 2018 | EconAlerts

AUD/USD risk tilted to the downside; holds below 23.6% Fibonacci mark.

AUD/USD retreats over the last couple of sessions and the risk is still to a bearish correction as price continues to drift lower from the 0.7990 resistance level. The price posted a pullback on the 20-day simple moving average on Monday and slipped below the 23.6% Fibonacci retracement at 0.7826 level of the up-leg from 0.6820 to 0.8135. Price action is at the moment taking place not far below this area.

Momentum indicators are pointing to a negative bias in the short-term with the MACD just below the zero line and the stochastic oscillator deep in bearish territory. However, the stochastic is ready to reach the oversold area and the %K line is attempting a bearish cross with the %D line, suggesting further downside pressure to come.

Further losses should see the 0.7730 – 0.7755 area, which is acting as a major support. If prices fell below the aforementioned zone, it would reinforce the bearish structure in the medium-term and open the way towards the next key support level of 38.2% Fibonacci mark at 0.7635.

In the event of an upside reversal, the 23.6% Fibonacci level could act as a barrier before being able to re-challenge the 40-day SMA near 0.7917 at the time of writing. A break above this level could shift the outlook to a more bullish one as it could take the pair towards the 0.7990 resistance level.

It is worth mentioning that AUD/USD has been holding within an ascending move since January 2016 and tested several times the uptrend line.

AUD/USD Daily 28 FEB 2018 | EconAlerts

 

TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital

 


Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

Leave a Reply

Your email address will not be published. Required fields are marked *