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