AUD/USD Price Analysis: Bounces off lows, not out of the woods yet


  • AUD/USD trimmed a part of its intraday losses amid a modest USD pullback.
  • The near-term technical bias remains tilted firmly in favour of bearish traders.
  • A  sustained move beyond the 0.7765-75 region will negate the negative bias.

The AUD/USD pair quickly recovered around 35 pips from daily swing lows and was last seen trading with only modest losses, around the 0.7670 region.

The US dollar trimmed a part of its intraday gains to three-and-half-month tops and extended some support to the AUD/USD pair. Apart from this, a sudden pick up in the US equity futures provided an additional boost to the perceived riskier aussie.

From a technical perspective, the pair once again attracted some buying ahead of the 38.2% Fibonacci level of the 0.7027-0.8008 positive move. The mentioned support is pegged near the 0.7620 region and should now act as a key pivotal point for traders.

Given Friday's sustained break below 50-day SMA, the near-term bias might have shifted in favour of bearish traders. The negative outlook is reinforced by the fact that oscillators on the daily chart have just started drifting into the bearish territory.

Sustained weakness below the 38.2% Fibo. support will reaffirm the bearish bias and pave the way for an extension of the recent retracement slide from the key 0.8000 psychological mark. The AUD/USD pair might then turn vulnerable to break below the 0.7600 mark.

The downward trajectory could then get extended towards testing 100-day SMA support, currently near the 0.7545-40 region. The AUD/USD pair could eventually drop to the 50% Fibo. level, around the key 0.7500 psychological mark.

On the flip side, the 50-DMA, coinciding with the daily swing highs, around the 0.7740-45 region, should now act as a strong resistance. This is closely followed by 23.6% Fibo. level resistance near the 0.7765-75 congestion zone.

A convincing breakthrough will negate any near-term negative bias and prompt some short-covering move. The subsequent positive move has the potential to lift the AUD/USD pair back above the 0.7800 mark, towards testing the 0.7830-40 supply zone.

AUD/USD daily chart

fxsoriginal

Technical levels to watch

AUD/USD

Overview
Today last price 0.7676
Today Daily Change -0.0017
Today Daily Change % -0.22
Today daily open 0.7693
 
Trends
Daily SMA20 0.7788
Daily SMA50 0.7734
Daily SMA100 0.7532
Daily SMA200 0.7314
 
Levels
Previous Daily High 0.7732
Previous Daily Low 0.7622
Previous Weekly High 0.7838
Previous Weekly Low 0.7622
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7664
Daily Fibonacci 61.8% 0.769
Daily Pivot Point S1 0.7632
Daily Pivot Point S2 0.7572
Daily Pivot Point S3 0.7522
Daily Pivot Point R1 0.7743
Daily Pivot Point R2 0.7793
Daily Pivot Point R3 0.7853

 

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slips from highs as investors await US Retail Sales

EUR/USD has backed down from the highs near 1.20 as the dollar benefits from the Fed's upbeat mood. All eyes are on US Retail Sales, which are set to leap. 

EUR/USD News

GBP/USD rises toward 1.38 ahead of US data, Brexit meeting

GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed. 

GBP/USD News

Bitcoin on-chain data shows BTC is reaching “peak hype”

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally. Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Coinbase (COIN) closes down 14% from the $381 opening price, what next?

After a dream debut for the cryptocurrency exchange Coinbase Global Inc. (COIN) on Nasdaq at $381, the shares rallied as high as $429.54. Although the upswing failed to sustain, as Bitcoin fell from record highs and tech stocks tumbled across the board. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures