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Technical Analysis – AUD/USD gains positive traction

AUD/USD 20Feb19 | EconAlerts

AUD/USD gains positive traction; lacks clear bullish signals.

AUD/USD is extending last week’s rebound above the 0.71 level but with technical indicators showing little strength at the moment, it is still questionable whether the pair has the dynamics to fully recover February’s losses in the short term. The MACD is rising steadily above its red signal line and is in negative territory, and the RSI seems to be slowing positive momentum above its 50 neutral level, while the red Tenkan-Sen line is flat below the blue Kijun-Sen line.

In case bullish forces persist, nearby resistance could be found around the 0.7200 round level, while slightly higher a more exciting battle could start between the 200-day moving average currently at 0.7266 and the previous peak of 0.7294. Should the bulls win, the rally may pick up steam towards the 0.7360 level, while a close above 0.7440, which is the 50% Fibonacci of the long down leg from 0.8135 to 0.6745, could be a sign of a broader bullish trend.

On the flipside, a move northward is expected to hit the area around the 23.6% Fibonacci of 0.7074. Another leg lower could open the door for the 0.70 psychological level which is significantly broken, could eventually increase selling orders towards the 0.69 and 0.68 levels before the 0.6745 bottom comes into focus.

In the medium-term, AUD/USD is stable in a neutral mode within the 0.70-0.7392 area. The flattening 50-day MA suggests that the sideway run may not change any time soon.


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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

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