You are here: Home > articles > Forex > Technical Analysis – AUDUSD hovers around moving averages as 0.64 support holds
Technical Analysis – AUDUSD hovers around moving averages as 0.64 support holds
August 29, 2023 3:27 pmVideo
Latest News
- Trading Signals for GOLD (XAU/USD) for April 15-17, 2024: buy above $2,328 (200 EMA – 5/8 Murray) April 15, 2024
- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
- EUR/USD: trading plan for the US session on April 15th (analysis of morning deals). Euro is at an impasse April 15, 2024
- GBP/USD: Will sterling hold steady against dollar? April 15, 2024
- Technical Analysis – USDJPY rallies to another fresh 34-year high April 15, 2024
- Will Netflix earnings take the share price closer to its record highs? – Stock Markets April 15, 2024
- EUR/USD. April 15th. Bulls panic and retreat from the market April 15, 2024
- GBP/USD. April 15th. The dollar gains confidence April 15, 2024
- Weekly forecast based on simplified wave analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, AUD/JPY, and the US Dollar Index April 15, 2024
- XM’s Heartfelt Ramadan Iftar Support April 15, 2024
- Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on April 15th April 15, 2024
- Technical Analysis – US 500 reverses towards 123.6% Fibonacci April 15, 2024
AUDUSD has been trading sideways since the middle of August as its month-long slide came to a halt, while since late August, price action has been centred around the flatlining 20- and 50-period simple moving averages (SMA). During this period, a support base has been established between 0.6380 and 0.6400, while to the upside, the Ichimoku cloud has stood in the bulls’ way.
The momentum indicators point to a mixed bias in the near term. The fast stochastic (%K) has started to steady a bit after its bearish crossover with the slow stochastic (%D). The MACD, meanwhile, is attempting to climb above zero, having managed to hold above its red signal line for the past few sessions.
If the positive momentum that’s started to take shape in the last four-hour session gains more traction, the price could soon punch through the Ichimoku cloud and head for the previous peak of 0.6487, which at the time coincided with the cloud top. Not far above this area is the 0.6500 level that acted as both support and resistance earlier in August. A rise above 0.6500 would embolden the bulls and pave the way for the 200-period SMA, which lies in the 0.6600 region. AUDUSD twice failed to break above this point during August.
However, if the cloud top proves too difficult to crack, the focus would likely switch to the downside and the 0.6400 support. If this defence line breaks, the next test will be the nine-month low of 0.6364, after which traders would turn their attention to the 0.6300 level. A drop below this handle would open the path to the October 2022 low of 0.6169.
To sum up, it is too soon to predict an end to this choppy sideways pattern. AUDUSD would either have to make a new high above 0.6487 or a new low below 0.6364 to signal the start of a new uptrend or downtrend.
Related Posts: