Technical Analysis – AUDUSD clears key barrier but another one on the horizon
November 6, 2023 2:29 pm
AUDUSD claims 0.6400 zone after fast rally
Short-term bias positive, but there are more threats higher
RBA to raise interest rates, but the aussie may not gain
AUDUSD breached the tough 0.6430-0.6450 zone with strong momentum to rise straight up to the August bar of 0.6520 last Friday.
The possibility of a rate hike has investors in a wait and see mode as the Reserve Bank of Australia meets on Tuesday.
Traders might sell the fact if the central bank indicates the end of monetary tightening, even though a rate increase could theoretically be beneficial for the aussie. Technically, the pair is sailing near overbought waters according to the stochastic oscillator. The RSI is also flagging a potential downfall as it’s losing impetus slightly below 70.
If buyers stay in play, the door will open for the 200-day SMA and the 50% Fibonacci of 0.6590. Running higher, the pair will have to face the 61.8% Fibonacci of 0.6660 and the resistance line from April 2022 at 0.6690.
Should the bears press the price below 0.6430-0.6450, the 20- and 50-day SMAs may prevent an aggressive downfall towards the 0.6300 round level. If the latter gives way too, the decline could continue towards the support line from March at 0.6246.
In a nutshell, despite the latest exciting rebound in AUDUSD, there are some obstacles to consider before a real bullish trend reversal takes place. The 0.6520 mark is currently in target ahead of the 0.6590 barrier.
AUDUSD claims 0.6400 zone after fast rally
Short-term bias positive, but there are more threats higher
RBA to raise interest rates, but the aussie may not gain
AUDUSD breached the tough 0.6430-0.6450 zone with strong momentum to rise straight up to the August bar of 0.6520 last Friday.
The possibility of a rate hike has investors in a wait and see mode as the Reserve Bank of Australia meets on Tuesday.
Traders might sell the fact if the central bank indicates the end of monetary tightening, even though a rate increase could theoretically be beneficial for the aussie. Technically, the pair is sailing near overbought waters according to the stochastic oscillator. The RSI is also flagging a potential downfall as it’s losing impetus slightly below 70.
If buyers stay in play, the door will open for the 200-day SMA and the 50% Fibonacci of 0.6590. Running higher, the pair will have to face the 61.8% Fibonacci of 0.6660 and the resistance line from April 2022 at 0.6690.
Should the bears press the price below 0.6430-0.6450, the 20- and 50-day SMAs may prevent an aggressive downfall towards the 0.6300 round level. If the latter gives way too, the decline could continue towards the support line from March at 0.6246.
In a nutshell, despite the latest exciting rebound in AUDUSD, there are some obstacles to consider before a real bullish trend reversal takes place. The 0.6520 mark is currently in target ahead of the 0.6590 barrier.
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