AUSTRALIAN DOLLAR WEEKLY TECHNICAL OUTLOOK – AUDUSD, AUDJPY, EURAUD:
The Australian Greenback retains climbing larger, however the current ascent could also be working out of steamAUDUSD and AUDJPY face severe technical obstacles for pattern continuation whereas EURAUD could possibly be gearing up for a reversalSeeking to be taught extra in regards to the forex market? Try our free academic information on Foreign exchange Buying and selling
Australian Greenback worth motion has notched a formidable rally to this point this month. Actually, the near-vertical ascent in AUDUSD during the last 10 buying and selling days marks the strongest stretch of features over the identical lookback interval since January. But, technical confluence across the zero.6900 deal with seems to be presenting itself as an impediment for pattern continuation within the Australian Greenback as upside turns sluggish. On the similar time, the RSI is working scorching because the Australian Greenback approaches a studying of 70 and “oversold” territory whereas the MACD might recommend upward momentum is fading.
AUDUSD PRICE CHART: DAILY TIME FRAME (APRIL 11, 2019 TO SEPTEMBER 13, 2019)
If AUDUSD worth motion can proceed larger into subsequent week, nonetheless, the July swing low round zero.6915 is perhaps focused as the following upside goal earlier than resistance posed by the midpoint retracement stage of the forex pair’s buying and selling vary since April comes into consideration. Seeking to the draw back, spot AUDUSD has potential to seek out help from its 50-day easy shifting common and June swing low round zero.6835. Main resistance-turned-support on the zero.6800 deal with will doubtless be eyed subsequently by AUDUSD bears if the aforementioned technical ranges fail to maintain the Australian Greenback afloat.
AUDJPY PRICE CHART: DAILY TIME FRAME (APRIL 12, 2019 TO SEPTEMBER 13, 2019)
Australian Greenback features have been significantly hanging when taking a look at AUDJPY. The notorious sentiment-linked forex pair has soared as US-China commerce tensions thaw which has boosted danger urge for food and helped propel spot AUDJPY to its highest stage since August 1. The sharp rebound larger within the Australian Greenback has moved with such conviction it was sufficient to smash by way of bearish pattern resistance prolonged from the swing highs in April and July.
Spot AUDJPY now treads comfortably above the 74.000 deal with – an space of technical confluence underscored by the June swing low and 38.2% Fibonacci retracement stage of its year-to-date buying and selling vary – which Aussie bulls will doubtless look to carry as worth motion unfolds. Under this space, the 50-DMA and just lately shaped uptrend line even have potential to offer help.
EURAUD PRICE CHART: DAILY TIME FRAME (APRIL 12, 2019 TO SEPTEMBER 13, 2019)
Final however not least, the technical backdrop on spot EURAUD is kind of intriguing. The bullish wick printed within the wake of the September ECB assembly is a bit discouraging for these anticipating additional draw back in spot EURAUD. Additionally, the RSI bouncing off “oversold territory” and converging shifting averages prompt by the MACD indicator each converse to the potential reversal larger could also be within the making. If EURAUD can agency its footing above the 1.6100 mark and 61.eight% Fibonacci retracement stage of its 2019 buying and selling vary, spot costs could possibly march larger and check the 1.6200 worth stage. This space of resistance is underscored by the 50% retracement of its year-to-date vary along with its 20-DMA and 50-DMA.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
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