• AUD/USD bulls are guarding 0.7200 areas which could lead to a bullish surge.
  • A break of trendline support opens risk to 0.7000 which guards 0.6920 and then 0.6780.

As per the analysis at the start of the week, AUD/USD Price Analysis: Bears pressure 0.72 the figure, eyes on key employment data, the price is stabilising near 0.7200. There has been a low of 0.7195 so far, but this area is expected to be a strong location of support.

If the bulls commit to here in a significant way, a thrust to the upside could come as a consequence and lead to prospects of a bullish continuation towards 0.7400 and beyond channel resistance:

 

The bulls have committed to around 0.7200 since the prior analysis (above) illustrated in the up to date price action chart as follows:

In doing so, there are prospects of a right-hand shoulder (RHS) being formed.  Should this development play out, then the price would be expected to break out from the neckline resistance and move in to challenge the channel resistance thereafter. This could leave the 0.74 figure exposed for a test and the potential for a subsequent break thereof. 

On the other hand, should the bears break this current area of support, the dynamic trendline support would be exposed and vulnerable. 0.7150 and 0.7130 recent lows would guard prospects of a weighty breakout to the downside:

0.7000 guards 0.6920 and then much lower towards 0.6780 thereafter. 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0400 as focus shifts to US data

EUR/USD stays below 1.0400 as focus shifts to US data

EUR/USD clings to modest daily gains and trades at around 1.0350. Eurostat reported on Wednesday annual Core HICP remained steady at 5% in the Eurozone in November as expected. Investors await US ADP employment data and Powell's speech.

EUR/USD News

GBP/USD steadies near 1.2000 ahead of US data

GBP/USD steadies near 1.2000 ahead of US data

GBP/USD managed to stage a rebound from the 1.1950 area but lost its bullish momentum near 1.2000 as investors await the ADP private sector employment report from the US. FOMC Chairman Jerome Powell will deliver a speech on the economy and inflation later.

GBPUSD News

Gold bulls seek validation from $1,760 and Fed Chair Powell

Gold bulls seek validation from $1,760 and Fed Chair Powell

Gold price remains firmer for the second consecutive day, bounces off 10-DMA, short-term key support. Fed Powell’s first speech after November, hawkish hopes tease Gold sellers.

Gold News

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price action has spiked 5% over the last 24 hours, hinting at the start of an optimistic scenario. Previous publications have already explored why BTC is ready for a bear market rally from both short-term and long-term outlooks.

Read more

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it Premium

ADP Jobs Preview: Markets set to find more reasons to sell the Dollar, big beat needed to boost it

ADP's jobs report has finally come in line with the official NFP report. It took a hiatus and a change in formula to make that happen, but what matters is that this release finally matters. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures