The pair is trading in the red as the USD was lifted by the USDX’s rally. AUD/USD is trading at 0.6910, lower versus the 0.7042 today’s high, a confirmed bearish engulfing will suggest selling and bearish reversal.
The USD tries to rebound and recover ahead of the FOMC policy meeting and before the US CPI data is released tomorrow. The dollar could dominate the currency market again if the US data comes in better than expected in the current week and if the FED sounds more hawkish tomorrow.
AUD/USD uptrend is obvious on the Daily chart, it has increased within an up channel and now has reached the 0.7031 high, but it was rejected by this level. It has failed to reach the weekly R1 (0.7105) level signaling exhaustion in the short term.
The pair is almost to hit the Pivot Point (0.6876) level again, but the outlook will remain bullish as long as the price stays within the ascending channel’s body. A valid breakdown from the up channel, below the uptrend line could give us a great chance to catch another leg lower.
I’ve drawn an orange descending pitchfork, hoping that I’ll catch a corrective phase on the Daily chart. An upper median line (UML) retest or a false breakout with great separation above this potential dynamic resistance could really confirm a bearish movement in the weeks to come.
AUD/USD Trading Tips
AUD/USD maintains a bullish bias as long as it stays inside the up channel, above the uptrend line, so another higher high, a breakout above the 0.7042 today’s high and above the 100% level will validate a further increase towards R2 (0.7241), near the 113% level.
As I’ve said earlier, a bearish engulfing followed by a valid breakdown from the up channel and maybe an upper median line (UML) retest will signal a corrective phase on AUD/USD, S2 (0.6511), and the S3 (0.6375) levels could be used as downside targets.
The material has been provided by InstaForex Company – www.instaforex.com
The pair is trading in the red as the USD was lifted by the USDX’s rally. AUD/USD is trading at 0.6910, lower versus the 0.7042 today’s high, a confirmed bearish engulfing will suggest selling and bearish reversal.
The USD tries to rebound and recover ahead of the FOMC policy meeting and before the US CPI data is released tomorrow. The dollar could dominate the currency market again if the US data comes in better than expected in the current week and if the FED sounds more hawkish tomorrow.
AUD/USD uptrend is obvious on the Daily chart, it has increased within an up channel and now has reached the 0.7031 high, but it was rejected by this level. It has failed to reach the weekly R1 (0.7105) level signaling exhaustion in the short term.
The pair is almost to hit the Pivot Point (0.6876) level again, but the outlook will remain bullish as long as the price stays within the ascending channel’s body. A valid breakdown from the up channel, below the uptrend line could give us a great chance to catch another leg lower.
I’ve drawn an orange descending pitchfork, hoping that I’ll catch a corrective phase on the Daily chart. An upper median line (UML) retest or a false breakout with great separation above this potential dynamic resistance could really confirm a bearish movement in the weeks to come.
AUD/USD maintains a bullish bias as long as it stays inside the up channel, above the uptrend line, so another higher high, a breakout above the 0.7042 today’s high and above the 100% level will validate a further increase towards R2 (0.7241), near the 113% level.
As I’ve said earlier, a bearish engulfing followed by a valid breakdown from the up channel and maybe an upper median line (UML) retest will signal a corrective phase on AUD/USD, S2 (0.6511), and the S3 (0.6375) levels could be used as downside targets.
The material has been provided by InstaForex Company – www.instaforex.com
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