Technical Analysis – AUDUSD crawls above 200-SMA but eyes remain on 0.7600
AUDUSD has been on a recovery mode this week, slowly erasing the slump to an eight-month low of 0.7476, which shot the price out of the 0.7531 – 0.8006 range area and put the market in a soft downward path.
The pair is currently aiming to extend its positive momentum above the 200-day simple moving average (SMA), with the RSI and the Stochastics backing the bullish attempt as the indicators are sloping upwards again after hitting a bottom in the oversold area. The MACD has also stabilized in the negative area, reflecting the growing presence of buying pressures.
That said, the 0.7600 level, which has been a former support area, appeared a tough barrier to overcome on Wednesday. This is also where the restrictive red Tenkan-sen line is converging, making any upside correction above that bar demanding.
Nevertheless, should the bulls claim the 0.7600 handle, they may also need to breach the 0.7645 barrier and the 20-day SMA in order to meet the key 0.7770 – 0.7815 key resistance territory. Beyond the latter, a decisive close above 0.7890 could underpin buying confidence towards the ceiling of the range at 0.7965 – 0.8006.
Alternatively, if sellers press the price back below the 0.7531 mark, the previous low of 0.7476 could see another test. Failure to hold here may generate additional losses towards the 0.7400 number, while lower the area around 0.7338 could establish the next pivot point.
Summarizing, although some improvement in market sentiment is evident in AUDUSD this week, questions remain about whether bullish pressures can endure above 0.7600.
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
