Back to Blog

Technical analysis of AUD/USD

After the formation of a double top the AUS/USD market reversed and has been trading in a tight downtrend channel since the beginning of March. The Australian dollar lost ground at the end of the last week, after Chinese GDO figures came in below the market forecast. Despite Tuesday’s strong session, with stock markets and commodities rising on the whole, there seems to be room for further downside. At 1.0375 this morning the Aussie is giving back yesterday’s gains as the market can’t seem to maintain any traction above 1.0412 and it is drifting downwards. With a bearish alignment of the 20 EMA below the 50 EMA on the daily chart and the 89 SMA acting as major resistance above the current market level, the downtrend appears intact. As the downward trend in the relative strength index reinforces the bearish forecast for the market, the pair could continue to give back the advance from earlier this year and revert back towards the 0.9930 area, the 38.2% Fibonacci level from the 2012 low to the 2011 high, as it searches for support. In the alternative scenario, a daily close above 1.045 could trigger a bullish reversal and open the door towards the 1.06 area.
Daily Chart

Hourly Chart

Dafni Serdari
Market Analyst
Disclaimer
The comment in this blog is the personal opinion of the contributors and not Intertrader.com. The content does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial adviser prior to entering into any bet. Intertrader.com is not responsible and disclaims any and all liability for the content of comments written by contributors to the blog, and the content of any third party sites linked from this blog.

Share this post

Back to Blog

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.