AUD/USD showing strong signs of further decline...
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 remains in the fight, yet price struggles to chalk up anything meaningful to the upside. An eventual break of the said demand zone has another layer of demand close by at 0.6094/0.5866, while a recovery could lead to trendline support-turned resistance (0.4776) making an appearance, followed by supply at 0.8303/0.8082.
Daily timeframe:
Partially altered outlook from previous analysis –
In light of recent downside in this market, testing multi-year lows at 0.6433, supply formed at 1.6585/1.6625. Further selling this week could approach demand at 0.6330/0.6245.
The RSI recently re-entered oversold territory, trading at 29.00.
H4 timeframe:
Support on this timeframe falls in at the 161.8% Fibonacci ext. point at 0.6483, which, as you can see, held ground thus far. Recent activity had the unit withdraw back into a descending channel formation (0.6638/0.6585) and test its upper boundary.
Supply at 0.6607/0.6588 made its debut last week, capping recovery gains off lows at 0.6542. Should we break above channel resistance today, traders are likely to see price address the said supply. A break of here has supply at 0.6655/0.6629 in the firing range, which intersects with trend line resistance, taken from the high 0.7031.
H1 timeframe:
The Australian dollar benefitted on the back of USD weakness Monday, dethroning the 0.65 handle to the upside and reaching highs of 0.6567.
Resistance falls in around the 0.6550 region, bolstered by the 100-period SMA and a 78.6% Fibonacci retracement at 0.6558. Analytics also show what appears to be a rising wedge pattern, which recently had its lower edge penetrated/retested.
Direction:
Monthly demand at 0.6358/0.6839 is rapidly deteriorating, with daily price exhibiting scope to test lower levels this week. Technical research, thus, anticipates additional selling to materialise over the coming weeks.
With H4 price retesting the underside of channel resistance, and holding, along with H1 price rejecting a reasonably attractive point of resistance around 0.6550 and penetrating a rising wedge formation to the downside, 0.65 could re-enter view.
Traders, therefore, may seek bearish scenarios south of 0.6550 today, particularly after retesting the underside of the H1 rising wedge, targeting 0.65, and possibly Friday’s low at 0.6433.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 remains in the fight, yet price struggles to chalk up anything meaningful to the upside. An eventual break of the said demand zone has another layer of demand close by at 0.6094/0.5866, while a recovery could lead to trendline support-turned resistance (0.4776) making an appearance, followed by supply at 0.8303/0.8082.
Daily timeframe:
Partially altered outlook from previous analysis –
In light of recent downside in this market, testing multi-year lows at 0.6433, supply formed at 1.6585/1.6625. Further selling this week could approach demand at 0.6330/0.6245.
The RSI recently re-entered oversold territory, trading at 29.00.
H4 timeframe:
Support on this timeframe falls in at the 161.8% Fibonacci ext. point at 0.6483, which, as you can see, held ground thus far. Recent activity had the unit withdraw back into a descending channel formation (0.6638/0.6585) and test its upper boundary.
Supply at 0.6607/0.6588 made its debut last week, capping recovery gains off lows at 0.6542. Should we break above channel resistance today, traders are likely to see price address the said supply. A break of here has supply at 0.6655/0.6629 in the firing range, which intersects with trend line resistance, taken from the high 0.7031.
H1 timeframe:
The Australian dollar benefitted on the back of USD weakness Monday, dethroning the 0.65 handle to the upside and reaching highs of 0.6567.
Resistance falls in around the 0.6550 region, bolstered by the 100-period SMA and a 78.6% Fibonacci retracement at 0.6558. Analytics also show what appears to be a rising wedge pattern, which recently had its lower edge penetrated/retested.
Direction:
Monthly demand at 0.6358/0.6839 is rapidly deteriorating, with daily price exhibiting scope to test lower levels this week. Technical research, thus, anticipates additional selling to materialise over the coming weeks.
With H4 price retesting the underside of channel resistance, and holding, along with H1 price rejecting a reasonably attractive point of resistance around 0.6550 and penetrating a rising wedge formation to the downside, 0.65 could re-enter view.
Traders, therefore, may seek bearish scenarios south of 0.6550 today, particularly after retesting the underside of the H1 rising wedge, targeting 0.65, and possibly Friday’s low at 0.6433.
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