AUD/USD technical analysis: Bears await a sustained break below 0.6800 neckline support


  • Remains depressed despite growing optimism over a partial US-China trade deal.
  • The recent failure constituted towards the formation of a bearish double-top pattern.

The AUD/USD pair struggled for a firm directional bias and seesawed between tepid gains/minor losses on the first day of a new trading week, shrugging off growing US-China trade optimism.
 
From a technical perspective, the pair’s recent pullback from the 0.6880-90 supply zone seemed to have constituted towards the formation of a bearish double-top pattern on the daily chart.
 
The pullback, however, stalled just ahead of the 0.6800 neckline support, which if broken will confirm the bearish formation and set the stage for a further near-term depreciating move.
 
Meanwhile, technical indicators on hourly charts have been gaining negative traction but maintained their bullish bias on the daily chart, which seemed to be the only factor lending some support.
 
Hence, it will be prudent to wait for a sustained breakthrough the mentioned support before placing any aggressive bearish bets and positioning for a slide towards mid-0.6700s support area.
 
On the flip side, the 0.6855 region – marking 100-day SMA – now becomes immediate strong resistance and is followed by the 0.6880-90 hurdle, which if cleared might negate the bearish set-up.
 
Sustained strength beyond the 0.6900 handle might prompt some additional short-covering move towards the key 0.70 psychological mark with some intermediate resistance near the 0.6930 region.

AUD/USD daily chart

fxsoriginal

AUD/USD

Overview
Today last price 0.6816
Today Daily Change -0.0006
Today Daily Change % -0.09
Today daily open 0.6822
 
Trends
Daily SMA20 0.6779
Daily SMA50 0.6787
Daily SMA100 0.6852
Daily SMA200 0.6962
 
Levels
Previous Daily High 0.6837
Previous Daily Low 0.6808
Previous Weekly High 0.6884
Previous Weekly Low 0.6808
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.6826
Daily Fibonacci 61.8% 0.6819
Daily Pivot Point S1 0.6808
Daily Pivot Point S2 0.6793
Daily Pivot Point S3 0.6779
Daily Pivot Point R1 0.6837
Daily Pivot Point R2 0.6851
Daily Pivot Point R3 0.6866

 

 

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