AUD/USD Technical Analysis: Falling wedge underway, 0.7140 confluence in spotlight
|AUD/USD daily chart
- The Australian Dollar (AUD) is presently a little stronger against the US Dollar (USD) around 0.7070 on early Friday.
- Considering descending trend-lines joining highs since late-January and important lows since January 07, a short-term “Falling Wedge” bullish chart pattern is underway on the AUD/USD pair’s daily chart.
- An upward sloping trend-line connecting low of January 04 to February month lows offer immediate resistance at 0.7110.
- However, pair’s upside past-0.7110 has to cross 0.7140 resistance confluence comprising 50-day simple moving average (SMA), 61.8% Fibonacci retracement of December – January decline and falling wedge resistance.
- In case prices rally beyond 0.7140 on a daily closing basis, they validate bullish pattern favoring a rise to 0.7200 and 200-day SMA level of 0.7230.
- Meanwhile, 0.7050, 0.7015 and 0.7000 can act as consecutive nearby supports ahead of highlighting the formation support and 38.2% Fibonacci retracement near 0.6980.
- Should the quote slips under 0.6980, chances of its drop to 0.6950, 0.6910 and 0.6870 can’t be denied.
AUD/USD 4-Hour Chart
- January month high near 0.7300 and 61.8% Fibonacci expansion (FE) of January to March moves, at 0.7355, can further please bulls after 0.7230.
- Also, 0.6930 could provide an intermediate stop between 0.6950 and 0.6910.
AUD/USD hourly chart
- 61.8% Fibonacci Retracement of February 27 to March 08 decline at 0.7125 could challenge buyers past-0.7110.
- 0.7040 is likely a small stop past-0.7050 but ahead of 0.7015.
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.