• The Australian currency trades close to its 2022 low.

  • The Moving Average indicator encourages more decline.

After reaching its yearly low of 6681, the Australian dollar rallied by approximately 80 pips en route to 6761. Nonetheless, the Australian Dollar paused following a rejection at the 6761 level. At the time of publication, the AUD/USD was trading at 6743, -0.0002, or -0.341% for the day.

This analysis relies on four-hour time frame

The AUD/USD pair has continued to decline since the high reached in early April of this year. In the early hours of yesterday's New York session, the Australian dollar reached a new annual low. In addition, the current Moving Average Indicator reading implies additional downside in the near future. The 100-MA crosses beneath the 200-MA, while the 50-MA also crosses beneath the 100-MA. The Relative Strength Index, on the other hand, stops in a natural zone and registers 51 on the value line, requiring momentum in the down or up direction to reinforce any direction patination.

AUDUSD

In the four-hour timeframe, the Aud/USD found a shutter in the neighborhood of 6712–6761. However, the doors are still open in both directions. In the meantime, the technical reading makes the downside scenario more likely to occur. In consonance, if the resistance level of 6761 can prevent the Aussie from making more gains that may push the price back towards the 6712 support level. If the price falls below the aforementioned level, that would open the door towards yesterday's and the yearly low of 6681. A successful closing below that level would reveal the number last seen on June 1, 2020.

Alternatively, if the Australian dollar wants to abandon the bearish scenario, then it must surpass the 6761 resistance level, a decisive break of that level that would pave the way towards 6799. If the price could close above the previously mentioned level, it would encourage the Aussie to encounter the resistance level of 6825, followed by the resistance level of 6860.

Note: When a resistance level is broken, it becomes a support level since the price will trade above it, and vice versa. Alternatively, the market may perform a false breakout or rebound after breaking support, or vice versa. Additionally, the market could bounce from any level of support or decline after breaking any level of resistance.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Majors

Cryptocurrencies

Signatures