XM does not provide services to residents of the United States of America.

Technical Analysis – AUDUSD’s pullback dismissed by 50-day SMA; upside intact



AUDUSD is finding some footing on the 50-day simple moving average (SMA) around 0.7605, after a near one-month retreat from the recently reached multi-year top of 0.7820. The Ichimoku lines are reflecting a pause in the climb, while the rising SMAs are preserving the bullish sentiment.

The ascent seems to be unharmed as the short-term oscillators are conveying a pickup in positive momentum. The MACD is holding above the zero mark, despite having dwindled below its red trigger line, while the RSI is improving just below the 50 threshold. Furthermore, the stochastic oscillator is demonstrating positive divergence, signalling additional price gains.

Pushing strongly off the rescuing 50-day SMA, the price may face initial upside friction from the blue Kijun-sen line at 0.7700 before the bulls challenge the resistance ceiling of 0.7781-0.7820. Conquering this obstacle could restore confidence in the pair, fuelling a positive impetus towards the 0.7916 and 0.7988 peaks from March and February 2018 respectively.

On the other hand, if sellers manage to dip the price below the 50-day SMA at 0.7605, early tough support could develop from the cloud’s upper surface and the 0.7461-0.7516 zone. However, if the pair deteriorates further, the 100-day SMA at 0.7397 and the neighbouring low of 0.7338 could attempt to terminate the decline.

Summarizing, AUDUSD’s positive tone should remain undamaged if the pair manages to remain above the 50-day SMA and the cloud. That said, a dive below the 0.7461-0.7516 area could feed a deeper retracement.

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.

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