Australian Dollar, AUD/USD – Talking Points
- AUD/USD has steadied again within the vary after some volatility
- The Aussie may need bearish momentum unfolding
- Will a development finally assert itself in AUD/USD?
AUD/USD TECHNICAL ANALYSIS
The Australian Dollar has been making decrease lows and decrease highs since making a peak simply above 0.8000 in February final yr. This is illustrated by descending development traces above and under the worth.
Last week, a spinning high candlestick formation occurred and the worth went greater than 1% decrease the following day. It has since recovered nearly all of these loses, however quite a lot of potential resistance ranges are simply above the worth.
The latest excessive of 0.71684 fell simply in need of a pivot level at 0.71700. It was additionally under the prior excessive of 0.71812. These all stay potential resistance ranges.
In addition, the 21, 34 and 55-day easy transferring commons (SMA) are clustered close by and might also provide resistance.
Further up, resistance may be discovered on the descending development line which is just under the 100-day SMA, at the moment close to 0.7250. Previous highs at 0.72768 and 0.73143 may additionally provide resistance.
A bearish triple transferring common (TMA) formation requires the worth to be under the quick time period SMA, the latter to be under the medium time period SMA and the medium time period SMA to be under the long run SMA. All SMAs additionally have to have a destructive gradient.
Looking selectively throughout a number of SMA time frames, a TMA formation may be in place. The 21, 55 and 100-day SMAs tick these containers. However, the 10-day and 34-day SMAs are out of order for a TMA formation.
Should the worth transfer under the 10-day SMA and keep there, the order and gradient throughout all SMAs would fulfill the factors for a bearish TMA.
On the draw back, help could possibly be on the latest lows of 0.70518 and 0.69676 or on the pivot that’s between these ranges at 0.69913, the latter is the low from November 2020.
Support might also be discovered on the descending development traces, at the moment close to 0.6960 and 0.6920.
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter
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