HomeContributorsTechnical AnalysisAUDUSD Eases Below Descending Trend Line, Neutral Bias In Short Term

AUDUSD Eases Below Descending Trend Line, Neutral Bias In Short Term

AUDUSD has been moving sideways over the last five weeks as the 0.7475 resistance level acted as a strong obstacle for the bulls and the 0.7310 support as a hurdle for the bears in the previous sessions. Also, the price failed to dip below the 18-month low of 0.7310, achieved on July 2 and holds near the 20- and 40-simple moving averages (SMAs) after the rebound on the latter level, in the daily timeframe.

From the technical point of view, momentum indicators are endorsing the neutral to bearish weakness in the market. The RSI indicator is sloping slightly downwards and stands below the threshold of 50, while the stochastic oscillator is ready for a bearish cross within the %K and %D lines, indicating further losses. However, the MACD oscillator is moving higher in the negative territory above its trigger line and is approaching the zero line.

Should prices drop further lower, this could open the way towards the 18-month low of 0.7310. Further downside extensions could drive the pair until the 0.7160 hurdle, taken from the bottom on December 2016. There are no significant support obstacles before that level.

On the flip side, the first resistance for investors to have in mind is the 0.7475 barrier. If there is a jump above this region, the price could challenge the 23.6% Fibonacci retracement level of 0.7505 of the downleg from 0.8135 to 0.7310. Above this barrier, if there is an upside penetration of the falling trend line, the focus shifts to the upside until the 38.2% Fibonacci of 0.7625.

To sum up, AUDUSD has been trading within a descending move since January 26 and is in progress to create a consolidation area within the 0.7475 and 0.7310 in the medium-term.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading