AUD/USD technical analysis: Surrenders early gains, conflicting signals on hourly chart


  • AUD/USD's hourly chart shows a rising wedge breakdown – a bearish reversal pattern, 
  • The hourly chart is also reporting a golden crossover. 

AUD/USD is currently trading at 0.6754, representing marginal losses on the day, having hit a high of 0.6765 in the early Asian trading hours. The pair hit a high of 0.6774 on Friday.

The pullback from Friday's high has confirmed a rising wedge breakdown on the hourly chart. A rising wedge is a bearish reversal pattern, meaning the bounce from Oct. 2's low of 0.6771 has ended and the bears have regained control.

Rising wedge breakdowns usually yield a drop to its bottom or the starting point. Put simply, the wedge breakdown suggests cope for a retest of recent lows near 0.6770.

While the rising wedge breakdown indicates the path of least resistance is to the downside, the golden crossover suggests otherwise.

The 50-hour moving average (MA) has crossed above the 200-hour MA, confirming a bullish or golden crossover. The rising wedge breakdown, however, will take precedence over the golden crossover as the latter is a lagging indicator.

That said, a strong bounce from the 200-hour MA, currently at 0.6744, would neutralize the wedge breakdown and open the doors for a move higher to 0.68.

Hourly chart

Trend: Neutral

Technical levels

AUD/USD

Overview
Today last price 0.6754
Today Daily Change -0.0017
Today Daily Change % -0.25
Today daily open 0.6771
 
Trends
Daily SMA20 0.6798
Daily SMA50 0.6788
Daily SMA100 0.6873
Daily SMA200 0.6987
 
Levels
Previous Daily High 0.6775
Previous Daily Low 0.6738
Previous Weekly High 0.6776
Previous Weekly Low 0.667
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.6761
Daily Fibonacci 61.8% 0.6752
Daily Pivot Point S1 0.6748
Daily Pivot Point S2 0.6724
Daily Pivot Point S3 0.6711
Daily Pivot Point R1 0.6785
Daily Pivot Point R2 0.6798
Daily Pivot Point R3 0.6822

 

 

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