AUD/USD Developing its Price Bottom

0
125
AUD/USD Developing its Price Bottom

The AUD/USD has been trading sideways in February. Before that it was bearish. This week, price action is suggesting a price bottom. Let’s take a look at the charts.

The AUD/USD is trading between 0.7626 and 0.7876. It is now breaking above the range resistance, but it is not convincing. After a brief pullback, there was support at 0.7850, which is a good sign for the bullish breakout. We will still need a more significant test of the February price action as support before being more confident about the bullish outlook.

For now, when we look at the daily chart, we can see resistance just above 0.79 coming from a falling trendline and 50-day SMA. Then at 0.8025-0.8035, there is a support/resistance pivot. The strongest bullish outlook should be limited to 0.8250-0.83 which involves a previous consolidation resistance and the 100-day SMA.

A fall below 0.78 might invalidate the bullish outlook. Because it would mean a false breakout this weak, the pressure will be back towards the low on the year around 0.7626.

Previous Post by Author: EUR/CAD Awaiting Breakout from the 1.4055 – 1.4349 Range

SHARE
Previous articleBank of England Commends Bitcoin Technology
Next articleUS and Canadian Data Reinforced the Triangle Support for USD/CAD
Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.