Can AUD/USD Hang on to a Price Bottom?

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Can AUD/USD Hang on to a Price Bottom?

The AUD/USD has been essentially consolidating in February after making a low on the year at 0.7626. Let’s take a look at the chart to assess the current technical conditions.

The AUD/USd is consolidating between that low at 0.7626 and a resistance around 0.7850 that has been holding throughout February. After a bounce from 0.7650, the pair climbed back to test the 0.7850 resistance again at the end of last week. So far this week, traders are respecting the resistance and thus the price bottom has not formed yet.

If price falls back below 0.7750, AUD/USD would likely be in bearish continuation, with downside risk at least back to the 0.7626 low. However, if price climbs above 0.7855, we are likely going to see further bullish correction with the 0.80 handle in sight. In the daily chart, we can see that up to 0.8070, we AUD/USD will be testing the support area of a previous consolidation range.

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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.