AUD/USD TECHNICAL OUTLOOK: BEARISH
Aussie Greenback selloff stalls just under Zero.67 determine vs US counterpartEach day shut above Zero.6930 could neutralize near-term promoting strainGeneral pattern bias continues to broadly favor a draw back state of affairs
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The Australian Greenback has stalled close to the Zero.68 determine after recoiling from resistance guiding the downtrend in opposition to its US counterpart since early December 2018. Preliminary assist is at Zero.6770, the November 14 swing low, with a every day shut under that exposing the vary flooring within the Zero.6671-90 space.
Fast resistance begins within the Zero.6881-95 congestion space, however Zero.6930 looks like the really decisive level within the close to time period. That’s the confluence of 11-month pattern resistance, the underside of a damaged counter-trend line, and October’s swing prime. A every day shut above that might trace at pattern change within the works.
Each day AUD/USD chart created with TradingView
The month-to-month chart continues to look ominous nevertheless, suggesting the general bias will in all probability nonetheless favor the draw back even when the bounds of the 2019 descent are damaged. It exhibits breaking of a 17-year uptrend being adopted by a push by means of a four-year assist shelf, hinting a structural decline is underway.
A interval of digestion may need been anticipated after costs sank to a decade low simply two months in the past. October’s conspicuous maintain on a retest of resistance within the Zero.6900-Zero.7018 zone suggests the trail least resistance leads decrease to check under the Zero.64 determine within the weeks forward nevertheless.
Month-to-month AUD/USD chart created with TradingView
AUD/USD TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
To contact Ilya, use the feedback part under or @IlyaSpivak on Twitter