AUD/USD Price Analysis: The pair moves into a strong support area


  • AUD/USD has fallen another 0.37% on Thursday.
  • There could be some relief on its way with some strong support.

AUD/USD daily chart

The Australian dollar has been the worst hit during the recent bout of dollar strength. The market is heading to a pretty formidably zone at the 0.70 area. Adding to the strength of the psychological area is the 23.6% Fibonacci retracement and black support like which was a strong resistance back on 31/12/2020. 

If this level fails there is another level to watch at the red horizontal line near 0.6836. This zone was important in early June as it acted as the main consolidation low before the really continued in mid-July. 

The indicators are understandably in a very bearish position. The MACD histogram is red and the signal lines are just about to cross over to the downside. The Relative Strength Index is showing a bullish sign even though it is in a bearish position. This is called a bullish failure swing, it is when the market is making higher lows but the indicator makes a lower low (often moves into oversold).

There could be a small move back up in the near term but longer term this does seem like a decent reversal to the downside. 

AUD/USD Technicals

Additional levels

AUD/USD

Overview
Today last price 0.7051
Today Daily Change -0.0026
Today Daily Change % -0.37
Today daily open 0.7077
 
Trends
Daily SMA20 0.7278
Daily SMA50 0.7201
Daily SMA100 0.6996
Daily SMA200 0.6772
 
Levels
Previous Daily High 0.7178
Previous Daily Low 0.7068
Previous Weekly High 0.7346
Previous Weekly Low 0.7254
Previous Monthly High 0.7416
Previous Monthly Low 0.7076
Daily Fibonacci 38.2% 0.711
Daily Fibonacci 61.8% 0.7136
Daily Pivot Point S1 0.7037
Daily Pivot Point S2 0.6997
Daily Pivot Point S3 0.6926
Daily Pivot Point R1 0.7148
Daily Pivot Point R2 0.7218
Daily Pivot Point R3 0.7258

 

 

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