Weekly timeframe:

Down 0.8 percent on the week, support at $1.1237-1.1281—made up of a 61.8% Fibonacci retracement at $1.1281 and a 1.618% Fibonacci projection from $1.1237—has been overthrown. 
This throws light on Quasimodo support as far south as $1.0778 and introduces a bearish environment. On top of this, technicians will acknowledge the pair took out 2nd November low (2020) at $1.1603. This suggests the beginnings of a primary downtrend on the weekly timeframe, reinforced on the back of the monthly timeframe trending lower since mid-2008.

Daily timeframe:

Quasimodo support at $1.1213 (positioned beneath the weekly timeframe’s Fibonacci structure) has come under fire. Establishing a decisive close beneath the latter not only helps validate the bearish environment brewing on the weekly timeframe, but also exposes limited support on the daily timeframe until $1.0991 (not visible on the screen).
In terms of the relative strength index (RSI), the indicator’s value is exploring oversold territory and threatening a move to support from 21.87. While the oversold region can prompt a bullish phase, downward trending situations can have the indicator remain within the area for prolonged periods. 

H4 timeframe:

In conjunction with the bigger picture portraying a downside bias, resistance emerged from $1.1215 on the H4. Note this level, as well as $1.1243, are previous Quasimodo support barriers.
19th June (2020) low coming in from $1.1168 pulls in potential support, should sellers maintain their current setting beneath $1.1215.

H1 timeframe:

The view out of the H1 chart has buyers and sellers squaring off around the lower side of $1.12, following a break lower in early US hours on Wednesday. 
$1.1265-1.1273 supply demands attention upstream, sheltered beneath supply at $1.1307-1.1283. 
The $1.1113-1.1140 decision point is seen to the downside. Though do be aware sentiment clearly favours sellers right now and may discourage buying from the decision point. 
From the relative strength index (RSI), the indicator dipped a toe back in oversold terrain in recent movement, shedding light on indicator support from 18.00. 

Observed Technical Levels: 

All four timeframes echo a bearish setting. 
Holding sub $1.12 (H1), therefore, could be in the offing, targeting $1.1168 (H4), followed by the H1 decision point at $1.1113-1.1140.


Weekly timeframe:

Following a one-sided decline from $0.7501, prime support at $0.6968-0.7242 has entered the fray.
November is down 4.4 percent.
The longer-term trend has been higher since pandemic lows of $0.5506 (March 2020). Though do note the monthly timeframe has been entrenched within a downtrend since mid-2011.

Daily timeframe:

Trendline resistance-turned support, etched from the high $0.7891, is on the point of breaking, movement placing Fibonacci support between $0.7057 and $0.7126 in the line of fire.
The trend on this timeframe remains in line with weekly movement: favours upside following the break of 3rd September high at $0.7478. However, the deeper sellers push this market, the more unlikely a recovery phase is. 

H4 timeframe:

$0.7213 support collapsed Wednesday, unlocking 29th September low from $0.7170 and perhaps Quasimodo support at $0.7144.
Trend direction is clearly tilted lower on this scale, aligning with higher timeframe structure. 

H1 timeframe:

Latest movement out of the H1 chart shows price engulfed $0.72.
South of here has 29th September low from $0.7170 in sight.
From the relative strength index (RSI), we can see the value beginning to gather some traction above oversold.

Observed Technical Levels: 

Similar to EUR/USD, AUD/USD puts forward a bearish setting beneath $0.72 on the H1, targeting 29th September low at $0.7170 as an initial objective.

This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; losses can exceed your initial payment and you must be able to meet all margin calls as soon as they are made. When trading CFDs you do not own or have any rights to the CFDs underlying assets.

FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products is available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 


GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.


Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!