You are here: Home > articles > Forex > Technical Analysis – AUDUSD sinks to fresh 2023 low, looking oversold
Technical Analysis – AUDUSD sinks to fresh 2023 low, looking oversold
August 17, 2023 8:28 amVideo
Latest News
- Analysis of the GBP/USD pair on April 18, 2024 April 18, 2024
- Analysis for EUR/USD pair on April 18th. Dull ending to a dull week April 18, 2024
- USD/JPY: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- EUR/USD: Simple trading tips for novice traders on April 18th (US session) April 18, 2024
- GBP/USD: trading plan for the US session on April 18th (analysis of morning deals) April 18, 2024
- Trading Signals for EUR/USD for April 18-20, 2024: buy above 1.0641 (21 SMA – 2/8 Murray) April 18, 2024
- Bitcoin slides ahead of halving event – Crypto News April 18, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 18-20, 2024: buy above $62,500 or $63,037 (4/8 Murray – rebound) April 18, 2024
- GBP/USD. April 18th. Andrew Bailey did not clarify the situation on QE April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 18-20, 2024: buy above $2,375 (6/8 Murray – 21 SMA) April 18, 2024
- Technical Analysis – Netflix stock moves within narrow range ahead of earnings April 18, 2024
- Technical Analysis – GBPUSD tries to recoup some losses April 18, 2024
- USD/JPY in crisis April 18, 2024
- EUR/USD: trading plan for US session on April 18. EUR gets stuck at 1.0686 April 18, 2024
- Fed to keep policy tight for longer than markets view April 18, 2024
- Technical Analysis – BTCUSD drops to 6-week low as halving looms April 18, 2024
- Midweek Technical Look – EURUSD, US 500, WTI April 18, 2024
- Technical Analysis – AUDJPY pulls back but stays in uptrend April 18, 2024
- Forex forecast 04/18/2024: EUR/USD, USD/JPY, Oil and Bitcoin from Sebastian Seliga April 18, 2024
AUDUSD has been in an aggressive decline after its latest bullish breakout from the rectangle encountered resistance at 0.6898, validating a double top pattern. In the near-term, the pair is posting consecutive lower lows, with the price appearing to have approached oversold conditions as it is trading very close to the lower Bollinger band.
The momentum indicators currently suggest that the recent selloff could be overstretched. Specifically, the MACD is softening below both zero and its red signal line at its lowest levels since March, while the RSI is hovering within its 30-oversold territory.
Should the negative pressures persist, the price could initially test the 2023 bottom of 0.6363, which also held strong in September 2022. Slicing through that region, the pair might descend towards levels not seen in months, where the November 2022 low of 0.6271 could curb further downside attempts. A break below the latter could open the door for the 38-month low of 0.6169 registered in October 2022.
Alternatively, if the pair manages to halt its retreat and bounce back, a series of previous support regions such as 0.6457, 0.6563 and 6.594 could prove to be hard hurdles for the bulls to conquer. Surpassing the latter, the price might challenge 0.6698, which has acted both as resistance and support in recent months.
In brief, AUDUSD has been in a clear downtrend for the last 10 days, marking a streak of fresh 2023 lower lows as the bears seem unwilling to lift the foot off the gas. Nevertheless, traders should not rule out a potential rebound as the pair has approached oversold conditions.
Related Posts: