The short-term charts of the AUD/USD suggest the uptrend has concluded for now after the bulls were unable to hold their ground above the key 0.9300 resistance area.
The 1 hour chart, for example, reveals several bearish patterns: there are divergences on the RSI and MACD indicators; a short-term bullish trend has been eroded and there’s also a false breakout pattern above the prior high of 0.9294. All of these signs point towards more losses in the near-term.
Meanwhile on a much larger time-frame, such as the weekly chart, below, we can see that 0.9300 marks the underside of a long-term broken bullish trend which is now offering resistance.
The 0.9300 area was a key support level in the past (as the daily chart shows below) and rather unsurprisingly this is now turning into resistance.
However the medium term trend has changed to bullish following the break of the 0.9135/65 area where several technical factors, including the 200-day moving average and a medium term bearish trend line, had converged. Thus traders could potentially fade the weakness there. We also a bullish trend line coming in around that area, which is also worth watching.
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
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