AUD/USD Technical Analysis: Aussie bulls might have more fuel in the tank to drive the market up to 0.7200 target

  • AUD/USD is in a bear trend as it is trading below its 50, 100 and 200-period simple moving average on the 4-hour chart. 
  • AUD/USD bottomed out near 0.7050 as the bulls created a lower low with the September low. The RSI and the Stochastic indicators are trading above the 50 line and the MACD is bullish. While the main trend is bearish, given the context there is the potential for a bullish leg up.
  • Upside targets can be located near 0.7144 (September 5 low) and 0.7200 figure. A daily close below 0.7041 (October low) would likely invalidate the current bullish bias.

AUD/USD 4-hour chart

Spot rate:                 0.7095
Relative change:      0.29%     
High:                        0.7130
Low:                         0.7087

Main trend:              Bearish
Short-term trend:     Bullish above 0.7041

Resistance 1:          0.7100 figure
Resistance 2:          0.7144 September 5 low
Resistance 3:          0.7200 figure August 15 low

Support 1:               0.7085, September 11 low
Support 2:               0.7041 October low
Support 3:               0.7000 figure
Support 4:               0.6830 January 15, 2016 low 

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