Home Technical Analysis Technical Analysis – AUDUSD continues bearish correction in near term; holds below 0.7800

Technical Analysis – AUDUSD continues bearish correction in near term; holds below 0.7800

6 min read

Technical Analysis – AUDUSD continues bearish correction in near term; holds below 0.7800

Melina Deltas, XM Investment Research Desk

AUDUSD has reversed back down again after finding resistance at the 0.7560 barrier, achieved on Monday and holds below the 0.7800 handle. The pair completed two consecutive bearish days and remains below the 20- and 40-simple moving averages (SMAs) in the daily timeframe. However, Wednesday’s trading session started in positive territory.

In the short-term, the momentum indicators seem to be in confusion. The RSI indicator is pointing slightly north, while is holding in negative. Also, the MACD oscillator climbed above the trigger line with weak momentum. But, the stochastic oscillator created a bearish cross below the oversold levels and is moving lower.

In case of further losses, the 0.7410 support level should act as a major support. A drop below this area would reinforce the bearish structure and open the way towards the next key support level of 0.7325, identified by the May 2017 low.

In the event of an upside reversal, the 0.7560 and the 23.6% Fibonacci retracement level of 0.7580 of the downleg from 0.8135 to 0.7410 could act as a significant resistance zone. A continuation of the bullish bias would shift the medium-term outlook to a more neutral one as it would take the pair towards the 0.7640 barrier, which holds near the 40-SMA and next until the 38.2% Fibonacci of 0.7685.

Overall, for a resumption of the longer-term uptrend, which was halted in April, AUDUSD would need to climb back above the ascending trend line and beat the 32-month peak of 0.8135, creating a new multi-month high.

Legal Disclaimer:
The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

Let’s block ads! (Why?)

Source link

Load More Related Articles
Load More By admin
Load More In Technical Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Atmospheric Gases, Hydrogen, Acetylene and Helium Gas Equipment – Global Market Overview & Outlook (2018-2025 …

DUBLIN–(BUSINESS WIRE)–The “Atmospheric Gases, Hydrogen, Acetylene and H…