- AUD/USD takes offers to refresh intraday low, prints the first daily loss in four.
- 61.8% Fibonacci retracement level will challenge the bears ahead of the key 0.6690 support confluence.
- Rising wedge teases sellers, 200-day EMA acts as immediate upside hurdle.
AUD/USD begins the key week on the negative side as it takes offers to refresh the intraday low near 0.6770 while snapping a three-day uptrend during early Monday in Asia. In doing so, the Aussie pair pokes the 61.8% Fibonacci retracement level of the pair’s August-October downside.
Even if the key Fibonacci retracement level, also known as the “Golden Ratio”, challenges the AUD/USD bears near 0.6770, the recently bearish MACD signals and the sluggish RSI (14) suggest the quote’s further downside. Also keeping the pair sellers hopeful is the one-month-old rising wedge bearish chart formation on the daily play.
It’s worth noting, however, that a convergence of the 100-day EMA and the stated wedge’s support line, near 0.6690, appears a tough nut to crack for the AUD/USD bears.
Following that, a south run towards the 38.2% Fibonacci retracement level near 0.6540 and then to the 0.6425 theoretical target can’t be ruled out.
Alternatively, the 200-day EMA level surrounding 0.6840 restricts immediate AUD/USD upside ahead of the aforementioned rising wedge’s top, close to 0.6880 by the press time.
In a case where the AUD/USD bulls keep the reins past 0.6880, the late August high near the 0.7000 round figure will be in focus.
AUD/USD: Daily chart
Trend: Further downside expected
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.
Recommended content
Editors’ Picks
EUR/USD pushes higher toward 1.0850 on broad USD weakness
EUR/USD has gained traction and rose to fresh daily highs near 1.0850 heading into the American session on Tuesday. The broad-based US Dollar weakness amid the risk-positive market environment helps the pair push higher. Focus shifts to US consumer sentiment data.
GBP/USD clings to modest daily gains above 1.2300
GBP/USD has found its footing following a drop below 1.2300 earlier in the day and advanced to the 1.2330 area. BOE Governor Bailey's comments on the financial crisis failed to trigger a noticeable market reaction. Investors await CB Consumer Confidence data from the US.
Gold gains traction, recovers toward $1,960
After having support near $1,950, Gold price gained traction and turned positive on the day near $1,960 amid the selling pressure surrounding the US Dollar. With the 10-year US T-bond yield holding above 3.5%, however, XAU/USD's upside remains limited.
Ethereum (ETH) options traders turn bearish ahead of the token unlock
Ethereum is holding steady above the $1,700 level despite slight bearish sentiment among options traders. Analysts have noted a rise in open interest in Ethereum, as co-founder Lubin assures that the altcoin is not a security.
S&P 500: With banking crisis in rear view, market pushes index closer to 4,000
The S&P 500 on Monday moved ahead cautiously without much fanfare after the US government agreed to sell $72 billion worth of Silicon Valley Bank assets to First Citizens Bank (FCNCA).