AUD/USD technical analysis: Intraday recovery falters near descending trend-channel resistance


  • The AUD/USD pair struggled to capitalize on its attempted intraday recovery from a support marked by the lower end of a short-term descending trend-channel.
  • Slightly oversold conditions on hourly charts prompted some short-covering move at the start of a new trading week, albeit lacked any strong bullish conviction.

Meanwhile, technical indicators maintained their bearish bias on the daily chart and turned out to be one of the key factors that kept a lid on the intraday positive move near the trend-channel resistance. 

This coupled with the fact that oscillators on the 1-hourly chart have also moved out of the oversold territory, now support prospects for the resumption of the near-term well-established bearish trend.

However, the downside is likely to remain supported by the lower end of the trend-channel ahead of this week’s key event risk – the latest FOMC policy update, scheduled to be announced on Wednesday.

On the flip side, a sustained break through the trend-channel resistance, near the 0.6880 region, leading to a subsequent move beyond the 0.6900 handle might prompt some addition short-covering move.

AUD/USD 1-hourly chart

AUD/USD

Overview
Today last price 0.6875
Today Daily Change 0.0003
Today Daily Change % 0.04
Today daily open 0.6872
 
Trends
Daily SMA20 0.6933
Daily SMA50 0.7004
Daily SMA100 0.7061
Daily SMA200 0.7115
Levels
Previous Daily High 0.6919
Previous Daily Low 0.6861
Previous Weekly High 0.7009
Previous Weekly Low 0.6861
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6883
Daily Fibonacci 61.8% 0.6897
Daily Pivot Point S1 0.6849
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.679
Daily Pivot Point R1 0.6907
Daily Pivot Point R2 0.6942
Daily Pivot Point R3 0.6966

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Back below 1.11 as President Trump extends shutdown through April

EUR/USD has fallen back below 1.11 amid risk aversion in stocks.  US President Trump's decision to extend lockdown to counter the coronavirus outbreak is likely to cause a deeper economic slowdown. Goldman Sachs believes the economic fallout has only just begun. 

EUR/USD News

GBP/USD: Off two-week high, below 1.2400, amid coronavirus crisis

With the dire warnings on the UK’s economic growth crossing wires amid expectations of a longer lockdown, GBP/USD drops below 1.2400 ahead of the London open on Monday. The surge in the virus figures and inclusion of the PM Boris Johnson recently weighed on the pair.

GBP/USD News

Gold declines in Asia as dollar catches bid

Gold is entrenched in the negative territory in Asia as the US dollar, the shiny metal's biggest nemesis, is benefitting from the renewed risk aversion in the equity markets.    China's reverse repo rate cut fails to restore risk sentiment and put a bid under the shiny metal. 

Gold News

WTI: Bears dominate below 13-day-old resistance trendline

While following a short-term falling trend line resistance, WTI drops to $22.000 amid the early Monday. In doing so, the energy benchmark remains near multi-year low amid the bearish MACD. $20.00 becomes the key for sellers ahead of targeting the three-week-old descending trend line.

Oil News

USD/CNH: Extends recovery gains beyond 7.1050 after PBOC rate cut

USD/CNH takes further measures after China’s central bank took steps to combat the coronavirus (COVID-19). PBOC cuts seven-day reverse repo rate, Moody’s cited weakness of China’s shadow banking industry.

Read more

Forex MAJORS

Cryptocurrencies

Signatures