AUD/USD: In overbought territory, a fall is likely
|Aussie early June's daily chart is pointing to overbought conditions. Yohay Elam, an analyst at FXStreet, takes a look at the AUD/USD technical picture which hints a correction.
Key quotes
“The Aussie is overbought – according to the Relative Strength Index on the daily chart, which is well above 70. That implies a correction. The upside move kicked off after AUD/USD broke above the uptrend channel and topped the 200-day Simple Moving Average. While upside momentum persists, a fall is more likely before rises can resume.”
“The fresh June high of 0.7012 is the immediate resistance line. The next cap is 0.7082, the high point in July 2019. Breaking above that level would open the door to 0.72, recorded in early 2019.”
“Some support awaits at 0.6940. It is followed by 0.6870, which capped the pair in February and 0.6690, a stubborn resistance in May.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.