AUD/USD to eventually succumb to profit-taking to 0.7550
|The AUD/USD pair came close again this week, pulling up to 0.7806 on Thursday just shy of the three-year high of 0.7820 from January 6. Friday's pullback to support at 0.7700 may be a sign that profit-taking is underway on the very steep ascent from the beginning of November, according to FXStreet’s Analyst Joseph Trevisani.
Key quotes
“The potential for a profit-taking drop in the AUD/USD to support at 0.7535 is relatively high, particularly if US interest rates continue to rise.”
“The area down to 0.7550 is vulnerable to profit-taking but below that, the support is firm and substantiated by fundamental trends.”
“The steep and almost unbroken rise in the AUD/USD in the last two months has made the 21-day moving average into a nearly parallel line to the upward channel and at 0.7678 it backs support at 0.7675. The 100-day average at 0.7345 and the 200-day at 0.7092 are well-beyond likely profit-taking range.”
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.