Technical Analysis – AUDUSD sticks about 0.7600 mark; retains optimism



AUDUSD is edging sideways in the vicinity of the 100-day simple moving average (SMA), sustaining its persevering bullish twinkle.  All the SMAs are defending the stubborn bullish structure, in spite of the fairly horizontal demeanour of the 50-day SMA.

The flattening Ichimoku lines suggest that the bearish impetus has fairly subsided, while the short-term oscillators are transmitting conflicting signals in directional momentum. The MACD has marginally stepped above its red trigger line but remains just below the zero level, while the improving RSI, is rising towards the 50 threshold. Contrary, the negatively charged stochastic oscillator is endorsing a pickup in negative price action.

If selling interest intensifies, direct downside constraints may be exercised by the 0.7531-0.7600 adjoining zone. Clearly steering beneath the 0.7531 trough, sellers may then challenge the critical support section of 0.7372-0.7461, which is also reinforced by the 200-day SMA. Subsequently, should a deeper retracement unfold, the bears could encounter downside hindrance around the 0.7220-0.7254 boundary.

Otherwise, buyers will be required to produce a more decisive push to overcome the capping resistance zone from the 100-day SMA at 0.7657 until the 50-day SMA at 0.7727. Next upside limitations may emanate from the cloud, in the proximity of the 0.7800 handle, prior to the 0.7848 high overhead. In the event additional gains unravel, the multi-year high of 0.8006 could come into play. From here, traders’ attention will shift to the 0.8094 level, which happens to be the 261.8% Fibonacci extension of the down leg from 0.7413 to 0.6990, and the neighbouring resistance band of 0.8135-0.8163.

Summarizing, AUDUSD is exhibiting a neutral-to-bullish tone and the next price direction could evolve with a break below 0.7531 or above 0.7848.

 

 

Latest News




Technical Analysis – USDCHF’s decline tries to take the upper hand


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.