Technical Analysis – AUDUSD retains positive mood
AUDUSD stays in recovery mode; flirts with 0.6700
Short-term bias remains on the positive side
AUDUSD received fresh buying on Monday to almost reach the 0.6700 number following Friday’s close above the 50-day simple moving average (SMA).
The pair has been trending up since the plunge to 0.6346 in early August, having completed two green weeks. There might be more progress ahead as the rising RSI is still some distance below its 70 overbought level and the MACD is ready to enter the positive area. However, it’s important to exercise caution since the stochastic oscillator is currently above its overbought level of 80 and the shorter-term simple SMAs have not yet shifted upwards.
Above the 0.6700 number, the bulls might need to pierce through the 0.6750 zone in order to access the 0.6800 bar. The 2023 resistance zone of 0.6870-0.6900 could be the next challenge, a break of which would bring the long-term bulls back into play.
On the downside, a step below 0.6670 could initially see a test near the 50 and 200-day SMAs at 0.6640 and 0.6600 respectively. If the 20-day SMA proves fragile near 0.6570 too, the focus will again shift to the 0.6470-0.6500 support area. Even lower, the tentative line that connects the 2023 and 2024 lows could be the next destination around 0.6430.
To recap, AUDUSD has the potential to gain further in the short term, though whether it has enough power to run above 0.6700-0.6750 remains to be seen.Related Assets
Latest News
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.
