Australian Dollar, AUD/USD, AUD/JPY, AUD/CAD, EUR/AUD – Weekly Technical Outlook
AUD/USD – Neutral
The Australian Dollar cautiously weakened in opposition to the US Dollar this previous week, however AUD/USD continues to commerce throughout the boundaries of an Ascending Channel, sustaining the near-term uptrend. On the opposite hand, costs stay decrease after a Shooting Star candlestick formation was confirmed earlier this month. A breakout below the channel might trace at resuming the dominant downtrend.
Such an consequence would expose the 0.7106 inflection level, which might be the following stage of key help. Below that’s the 0.6991 – 0.7016 help zone, which consists of lows going again to late 2020. If costs bounce off the ground of the channel’s backside, which will open the door to resuming the uptrend, with rapid resistance the midpoint of the Fibonacci retracement at 0.7275. Not far above that, AUD/USD will ultimately face a falling trendline from 2021.
Chart Created in TradingView
AUD/JPY – Bearish
The Australian Dollar seems to turn into more and more weak in opposition to the anti-risk Japanese Yen. AUD/JPY continued to make additional draw back progress after costs broke below a bearish Rising Wedge chart formation. That has opened the door to extending losses, with rapid help being the 61.8% Fibonacci retracement at 81.092. Clearing the latter exposes the 79.844 inflection level in the direction of the 2021 low. In the occasion of a flip increased, maintain an in depth eye on the 20-day Simple Moving Average (SMA) which can maintain as key resistance.
Chart Created in TradingView
AUD/CAD – Neutral
The Australian Dollar continues to face promoting stress in opposition to the Canadian Dollar, with AUD/CAD again to the 2021 low following losses because the finish of December. The 61.8% Fibonacci extension at 0.8978 seems to be rapid help. Taking out the latter might open the door to extending the dominant downtrend in the direction of April 2020 ranges and the 78.6% extension at 0.8870. However, constructive RSI divergence is current, exhibiting fading draw back momentum. This can at instances precede a flip increased. Key resistance stands out as the 0.9114 – 0.9146 inflection zone.
Chart Created in TradingView
EUR/AUD – Neutral
While the Euro misplaced floor to the Australian Dollar this previous week, EUR/AUD trimmed losses on Friday. Moreover, the pair was unable to pierce the ground of a Symmetrical Triangle chart formation. This might trace at additional consolidation for the pair. Immediate resistance seems to be the 1.5865 – 1.5947 inflection zone. Beyond that sits the ceiling of the triangle. A breakout under the formation might trace at extending losses, with key help at 1.5567. Below the latter sit 1.5449 after which 1.5357, the latter of which is the October low.
Chart Created in TradingView
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter
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