AUD/USD Technical Analysis: Oversold bounce underway
|The AUD/USD pair is currently trading at 0.71, having clocked a low of 0.7060 last week.
The 40-pip oversold bounce could be extended further toward the downward sloping 5-day moving average (MA) of 07125, as the RSI on the 4H chart is reporting a bullish divergence and an upside break of the falling trendline. Further, the RSI on the hourly chart has moved into bullish territory above 50.00.
The bounce, however, could be short-lived, courtesy of dovish RBA expectations. Also, Chinese yuan has erased early gains - the USD/CNH pair is currently trading largely unchanged on the day at 6.7815, having clocked a low of 6.7646 earlier today.
More importantly, a close above 6.7945 (the high of Friday's doji) could yield big rally in USD/CNH. A slide in yuan will likely accentuate bearish pressures around the Australian currency.
4-hour chart
Trend: oversold bounce
AUD/USD
Overview:
Today Last Price: 0.7101
Today Daily change: 16 pips
Today Daily change %: 0.23%
Today Daily Open: 0.7085
Trends:
Daily SMA20: 0.7174
Daily SMA50: 0.7156
Daily SMA100: 0.7169
Daily SMA200: 0.7283
Levels:
Previous Daily High: 0.7107
Previous Daily Low: 0.706
Previous Weekly High: 0.7265
Previous Weekly Low: 0.706
Previous Monthly High: 0.7296
Previous Monthly Low: 0.6684
Daily Fibonacci 38.2%: 0.7078
Daily Fibonacci 61.8%: 0.7089
Daily Pivot Point S1: 0.7061
Daily Pivot Point S2: 0.7037
Daily Pivot Point S3: 0.7014
Daily Pivot Point R1: 0.7108
Daily Pivot Point R2: 0.7131
Daily Pivot Point R3: 0.7155
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