AUD/USD Price Analysis: Bulls flirt with 38.2% Fibo. level of this week’s downfall


  • AUD/USD gained strong positive traction on Friday amid renewed USD selling bias.
  • Sliding US bond yields, disappointing US Retail Sales weighed heavily on the buck.
  • The stage now seems set for a move towards reclaiming the 0.7800 round figure.

The AUD/USD pair built on the previous day's goodish rebound from sub-0.7700 levels and gained strong follow-through traction on the last trading day of the week. The momentum pushed the pair to two-day tops, around the 0.7760-65 region during the early North American session.

A sharp fall in the US Treasury bond yields – amid the Fed's stubbornly dovish stance – prompted some fresh selling around the US dollar on Friday. The already weaker USD lost some additional ground following the disappointing release of US monthly Retail Sales figures, which, in turn, was seen as a key factor behind the latest leg of an uptick in the past hour or so.

From a technical perspective, the AUD/USD pair was last seen hovering near the 38.2% Fibonacci level of this week's slide from the 0.7890 region, or the highest level since February 25. Given that technical indicators on the daily chart have just started moving back into the positive territory, some follow-through buying will set the stage for additional gains.

The AUD/USD pair might then accelerate the momentum and aim to reclaim the 0.7800 round-figure mark. This coincides with the 50% Fibo. level, which if cleared decisively will negate any near-term bearish bias and push the pair further beyond the 61.8% Fibo. level, towards challenging the next relevant hurdle near the 0.7845-55 region en-route weekly tops, around the 0.7890 region.

On the flip side, the 23.6% Fibo. level, around the 0.7735 region now seems to protect the immediate downside. This is closely followed by ascending trend-line support near the 0.7720-15 region, which if broken decisively will shift the bias in favour of bearish traders. The subsequent downfall has the potential to drag the AUD/USD pair back towards testing sub-0.7700 levels.

Sustained weakness below should pave the way for a slide towards the 0.7660 horizontal resistance breakpoint, now turned support, before the AUD/USD pair eventually drops to the 0.7600 round figure.

AUD/USD 1-hour chart

fxsoriginal

Technical levels to watch

AUD/USD

Overview
Today last price 0.776
Today Daily Change 0.0031
Today Daily Change % 0.40
Today daily open 0.7729
 
Trends
Daily SMA20 0.7761
Daily SMA50 0.771
Daily SMA100 0.7721
Daily SMA200 0.7492
 
Levels
Previous Daily High 0.7769
Previous Daily Low 0.7688
Previous Weekly High 0.7863
Previous Weekly Low 0.7674
Previous Monthly High 0.7819
Previous Monthly Low 0.7531
Daily Fibonacci 38.2% 0.7738
Daily Fibonacci 61.8% 0.7719
Daily Pivot Point S1 0.7688
Daily Pivot Point S2 0.7647
Daily Pivot Point S3 0.7607
Daily Pivot Point R1 0.7769
Daily Pivot Point R2 0.781
Daily Pivot Point R3 0.785

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles 1.21 after mixed US data

EUR/USD is trading above 1.21, choppy after US retail sales missed estimates with a drop of 1.3% but on top of upward revisions. Increases in producer prices accelerated last month.

EUR/USD News

GBP/USD bounces off two-month lows

GBP/USD has bounced off the fresh two-month low of 1.4034 but remains depressed. The delay in Britain's reopening is outweighing upbeat UK job figures. Tension is mounting ahead of the Fed.

GBP/USD News

XAU/USD looks to $1880 after recapturing $1858

Gold price is attempting a minor recovery above $1850, although the bulls appear to lack conviction, as the US dollar continues to hover near monthly highs.

Gold News

Bitcoin continues to range higher, but altcoins suffer

Bitcoin price has experienced a 32% upswing over the past six days and might retrace to gather more steam. Ethereum price performance is lackluster as it rallied roughly 17% in the same period as BTC.

Read more

Tesla still stuck in first gear

Tesla stock recovered last week as some investor enthusiasm finally returned to the stock with the release of the new Model S Plaid at Tesla's Freemont factory.

Read more

Forex MAJORS

Cryptocurrencies

Signatures