AUD/USD technical analysis: Drops to 1-week old support-line of symmetrical triangle

AUD/USD revisits Tuesday’s low but short-term trend-line support can limit further declines.
Symmetrical triangle portrays pair’s range-bound trading between 0.6765 and 0.6800.

Anil Panchal FXStreet

Even after declining to two-day lows, the AUD/USD pair remains supported by an immediate symmetrical triangle as it trades near .6768 during early Thursday.

A week-old symmetrical triangle formation presently restricts the pair’s moves between 0.6765 and 0.6800. As a result, pair’s latest declines is likely to witness a pullback towards 50% Fibonacci retracement level of July 31 to August 07 declines, at 0.6789. However, the pair’s additional rise will be questioned by the triangle resistance of 0.6800.

In a case prices rally beyond 0.6800, 0.6820 and 0.6870 can quickly appear on the chart ahead of fueling the run-up towards July-end top of 0.6900.

Meanwhile, pair’s decline below 0.6765 support-line will extend the pair’s latest drop in the direction to last week’s low of 0.6736 whereas 0.6695 and 0.6677 can please bears afterward.

AUD/USD 4-hour chart

Trend: Sideways

1. R3 0.6825
2. R2 0.6812
3. R1 0.6797
PP 0.6784
1. S1 0.6769
2. S2 0.6756
3. S3 0.6741

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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