AUD: Risk of spike higher before returning to range trading - Westpac

Momentum remains high, but has not rolled over as AUD tests multiple resistance at 0.7830-50, explains Tim Riddell, Research Analyst at Westpac.

Key Quotes

“AUD and daily momentum are now very stretched.”

“A larger squeeze (to 0.7910 or even 0.81+/-) is possible on a close above 0.7850, but equally, a slip below 0.7730 could signal a return to range trading.”


  • Weekly momentum is high but remains supportive as multiple resistance is being tested. Though now at extreme levels, momentum is still not faltering.
  • However, even if AUD breaks higher, it would still be seen as a broad corrective retracement and be followed by a return to range trading”


  • Monthly momentum has flipped from neutral to positive, notably in stochastics, as a long term down-channel, retracements and previous highs are being tested
  • This month’s close is critical. A close above the channel could open potential for a further (but corrective) squeeze. Below, would affirm range resistance”

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 securities. 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 Forex 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.