AUD/USD Technical Analysis: Inverse head-and-shoulders breakout confirmed, trade tensions may cap gains

For AUD/USD, the path of least resistance is on the higher side, technical charts indicate. The immediate gains, however, could be limited, courtesy of US-China trade tensions.

Omkar Godbole FXStreet Contributor

Daily chart

As can be seen above, the spot closed at 0.7330 on Friday, confirming an inverse head-and-shoulders breakout. That only bolstered the already bullish setup, as indicated by the upside break of the falling trendline, confirmed on Nov. 11 and the ascending 5- and 10-day EMAs.

4-hour chart

The stacking order of the 50-candle SMA, above the 100-candle SMA, above the 200-candle SMA also indicates the AUD bulls have regained control.
The spot could rise to 0.7600 (inverse head-and-shoulders breakout target) in the near-term. The bullish setup, however, could fail on escalating US-China trade tensions.

Trend: Bullish

AUD/USD

Overview:
    Last Price: 0.7322
    Daily change: -13 pips
    Daily change: -0.177%
    Daily Open: 0.7335
Trends:
    Daily SMA20: 0.7174
    Daily SMA50: 0.7168
    Daily SMA100: 0.7257
    Daily SMA200: 0.7454
Levels:
    Daily High: 0.7336
    Daily Low: 0.725
    Weekly High: 0.7336
    Weekly Low: 0.7164
    Monthly High: 0.724
    Monthly Low: 0.702
    Daily Fibonacci 38.2%: 0.7303
    Daily Fibonacci 61.8%: 0.7283
    Daily Pivot Point S1: 0.7278
    Daily Pivot Point S2: 0.722
    Daily Pivot Point S3: 0.7191
    Daily Pivot Point R1: 0.7364
    Daily Pivot Point R2: 0.7393
    Daily Pivot Point R3: 0.7451

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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