AUDUSD prints a bullish pattern but confirmation needed
Technical signals reflect some caution
AUDUSD held steady above the 10-month low of 0.6284 for the third time this month, indicating a potential bullish triple bottom pattern.
The positive structure needs confirmation above the 0.6435 region, where the broken support trendline drawn from the 2020 trough and the 23.6% Fibonacci retracement of the latest downleg are placed. But the resistance trendline from July could cancel any immediate increases at 0.6383. If it doesn’t and the bulls successfully climb the wall at 0.6435, the next target could be the 38.2% Fibonacci of 0.6520.
In the event the floor at 0.6284 collapses, with the price sliding below the 2023 support line at 0.6270 too, it could initially test the 0.6200 round level. Additional declines from there could stabilize within the 0.6100-0.6120 zone taken from March-April 2020, while a more aggressive downfall could clear the way towards the 0.6000 psychological mark.
Technically, a pullback cannot be excluded, as the RSI has yet to advance above its 50 neutral mark and the MACD remains attached to its red signal line in the negative area.
In brief, AUDUSD is trading within a neutral zone, with traders looking for a break either above 0.6435 or below 0.6270 to drive the market accordingly.
AUDUSD prints a bullish pattern but confirmation needed
Technical signals reflect some caution
AUDUSD held steady above the 10-month low of 0.6284 for the third time this month, indicating a potential bullish triple bottom pattern.
The positive structure needs confirmation above the 0.6435 region, where the broken support trendline drawn from the 2020 trough and the 23.6% Fibonacci retracement of the latest downleg are placed. But the resistance trendline from July could cancel any immediate increases at 0.6383. If it doesn’t and the bulls successfully climb the wall at 0.6435, the next target could be the 38.2% Fibonacci of 0.6520.
In the event the floor at 0.6284 collapses, with the price sliding below the 2023 support line at 0.6270 too, it could initially test the 0.6200 round level. Additional declines from there could stabilize within the 0.6100-0.6120 zone taken from March-April 2020, while a more aggressive downfall could clear the way towards the 0.6000 psychological mark.
Technically, a pullback cannot be excluded, as the RSI has yet to advance above its 50 neutral mark and the MACD remains attached to its red signal line in the negative area.
In brief, AUDUSD is trading within a neutral zone, with traders looking for a break either above 0.6435 or below 0.6270 to drive the market accordingly.
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