AUDUSD declined to close below the Ichimoku cloud and the short-term downward-sloping channel on Tuesday, with the price changing direction slightly north and back into the 0.6800 area.

Technically, the rebound in the RSI and the pause in MACD’s negative momentum is an encouraging signal for the next move in the price. However, as long as the indicators remain in bearish territory there is always a risk to the downside and therefore a potential for a retest of the 0.6800 area.

If the sell-off extends below 0.6800 and the bottom of the channel, traders could initially look for support around 0.6780 and then near the November trough of 0.6753. Moving lower, the 0.6720 mark may also halt selling pressure as it did earlier this year.

On the upside, the bulls should break above the channel’s upper trendline and the 0.6830 level to bring more strength towards the previous high of 0.6860. Slightly higher, however, there is a tougher barrier around 0.6880 which intersects with a long-term resistance trendline drawn from the 2018 peak of 0.7392 and traders will be eagerly waiting to see whether the pair can significantly rally above that wall. In case efforts prove successful, resistance could be next met near 0.6910.

Meanwhile in the bigger picture, the pair has been making higher lows since the end of September but has failed to post a higher high above 0.6928, maintaining a neutral profile instead.

Summarizing, AUDUSD seems to be looking for improvement within a short-term descending channel, though bearish risks remain alive. In the bigger picture, the pair needs to overcome 0.6928 to resume a positive outlook.


Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News

Forex Majors