Technical Analysis – AUDUSD pauses bullish rally for a while
- AUDUSD may find support at 0.6800
- Stochastic and RSI suggest more declines
AUDUSD has found strong resistance at the 20-month high of 0.6940 and is retreating towards the immediate 20-day simple moving average at 0.6800.
The technical oscillators currently confirm the recent bearish correction. Following the pullback from the overbought area, the stochastic oscillator is moving lower, while the RSI is moving horizontally slightly above the neutral threshold of 50.
A move to the downside could drive the markets towards the 20-day SMA at 0.6800, ahead of the 0.6765 support level. If the selling interest continues, then the pair may challenge the 50-day SMA at 0.6714 and the 200-day SMA at 0.6620.
Conversely, an upside recovery may pave the way for a retest of the 0.6940 barrier. Slightly higher, the 200-weekly SMA, which stands at 0.6960, may pause the bullish rally before it meets the next resistance at 0.7030, registered on February 23.
In a nutshell, AUDUSD is creating downside retracement but the broader outlook remains strongly positive.
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.
