AUD/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that after the break of the trendline, the price is having a hard time
breaking lower as the strong support at 0.6860 halted the selling
momentum.
The bearish bias remains though
as we have the moving
averages pointing south. The USD is supported fundamentally as the market is
repricing a higher terminal rate from the Fed and no cuts for this year. This
repricing started with the very strong NFP report and hot economic reports
afterwards. The market is probably just waiting for some catalyst before
pushing lower.
On the 4 hour chart below, we can
see that the selling momentum waned as the price tried a breakout of the
support at 0.6860 as depicted by the divergence with the MACD. It’s possible that we will see
first a pullback to the downward trendline before another attempt from the
sellers to break the support.
The buyers will need first to
break the trendline to the upside to start targeting higher highs and the resistance at the 0.70 handle, which will
be the key spot for both sides.
On the 1 hour chart below, we can
see that there’s confluence with a 61.8% Fibonacci
retracement level at the trendline. That may be a target for
the buyers and a good spot to lean on for the sellers as they will have a
defined risk and can fold fast if the price starts breaking the trendline to
the upside.