AUD/USD TECHNICAL OUTLOOK: BEARISH
Aussie Greenback bounces, hits 6-week excessive vs. US counterpartDominant pattern nonetheless bearish, invalidation above zero.70 markClose to-term chart hints at doable high, affirmation wanted
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The Australian Greenback is struggling to maintain upward momentum after probing inside a hair of the zero.69 determine towards its US counterpart. Costs stay above the zero.6832-65 inflection space – warning towards over-extrapolating draw back follow-through – however momentum has clearly ebbed relative to the tempo of the spirited restoration from September lows.
Securing a break beneath zero.6832 on a every day closing foundation would mark an essential step towards figuring out broader downtrend resumption and assist set the stage for a retest of the month-to-month help shelf within the zero.6677-90 zone. The early-2019 spike low at zero.6744 might emerge as a little bit of a sticking level alongside the way in which on this state of affairs, however it has not confirmed to be a very potent barrier to date.
Every day AUD/USD chart created with TradingView
Nonetheless, the general pattern continues to counsel that the trail of least resistance leads decrease. Neutralizing near- to medium-term bearish cues would most likely require a every day shut above resistance capping the upside since early November 2018, now squarely on the zero.70 determine. A break above the September 12 swing excessive at zero.6895 is a necessary prerequisite earlier than a check of this boundary seems believable.
AUD/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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