Aussie Tanks Towards Key Technical Pivot

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Australian Dollar Technical Price Outlook: Near-term Trade Levels

  • Australian Dollar technical commerce degree replace – Daily & Intraday Charts
  • AUD/USD breakdown approaching key technical zone- threat for inflection
  • Resistance 7100, 7171(key) – Support 6991-7016 (vital), 6907

The Australian Dollar has plunged greater than 2% in opposition to the US Dollar this week with the post-FOMC breakdown taking Aussie in the direction of a multi-year technical help pivot zone on the 2021 lows. The focus is on a response into this threshold with an in depth under wanted to maintain the short-bias viable within the days forward. These are the up to date targets and invalidation ranges that matter on the AUD/USD technical worth charts into the shut of the week. Review my newest Strategy Webinar for an in-depth breakdown of this Aussie setup and extra.

Australian Dollar Price Chart – AUD/USD Daily

Chart Prepared by Michael Boutros, Technical Strategist; AUD/USD on Tradingview

Technical Outlook: The Australian Dollar broke under confluent help this week on the January 7th low-day shut / the December uptrend at 7180 with the post-FOMC sell-off marking an outside-day reversal into the lows yesterday. A break of the month-to-month opening-range retains the main target decrease in AUD/USD with the sell-off now focusing on a vital help zone we’ve been monitoring for months on the November low / 2020 yearly-open at 6991-7016– we’re in search of doable worth inflection there IF reached.

Australian Dollar Price Chart – AUD/USD 120min

Australian Dollar Price Chart - AUD/USD 120min - Aussie Trade Outlook - Technical Forecast

Notes: A better have a look at Aussie worth motion exhibits AUD/USD buying and selling throughout the confines a descending pitchfork formation extending off the December / January highs. A break of the weekly opening-range yesterday fueled one other leg decrease with the decrease parallel additional highlighting key help at 6991-7016 over the subsequent few days. A break under this threshold may see one other accelerated bout of losses for Aussie with such a state of affairs eyeing preliminaryhelp targets at 6907. Resistance now again at 7100 backed carefully by the median-line (presently ~7110) with near-term bearish invalidation lowered to the weekly open at 7171.

Bottom line: The Australian Dollar sell-off is approaching key help at a multi-year pivot zone which has sparked main inflections in worth (observe the December low). From a buying and selling standpoint, look to scale back short-exposure / decrease protecting stops on a stretch in the direction of 7000- rallies must be capped by the median-line IF worth is heading decrease with a break from right here risking one other 100pip drop. Stay nimble down right here – in the end a breach / every day shut above the yearly open at 7270 could be wanted to shift the broader focus greater in Aussie. Review my newest Australian Dollar Weekly Price Outlook for a more in-depth have a look at the longer-term AUD/USD technical commerce ranges.

For a whole breakdown of Michael’s buying and selling technique, evaluation his Foundations of Technical Analysis sequence on Building a Trading Strategy

Australian Dollar Trader Sentiment – AUD/USD Price Chart

Australian Dollar Trader Sentiment - AUD/USD Price Chart - Aussie Technical Outlook

  • A abstract of IG Client Sentiment exhibits merchants are net-long AUD/USD – the ratio stands at +1.74 (63.48% of merchants are lengthy) – sometimes a bearish studying
  • Long positions are 14.71% greater than yesterday and 9.50% greater from final week
  • Short positions are13.10% decrease than yesterday and 12.22% decrease from final week
  • We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests AUD/USD costs might proceed to fall. Traders are additional net-long than yesterday and final week, and the mix of present positioning and up to date modifications provides us a stronger AUD/USD-bearish contrarian buying and selling bias from a sentiment standpoint.

Australia / US Economic Calendar

Australia / US Economic Calendar - AUD/USD Key Data Release - Aussie Event Risk

Economic Calendarnewest financial developments and upcoming occasion threat.

Active Technical Setups

– Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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