You are here: Home > articles > Forex > Technical Analysis – AUDUSD records a new 17-year low in oversold zone
Technical Analysis – AUDUSD records a new 17-year low in oversold zone
March 18, 2020 9:14 amVideo
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 in a strong bearish rollercoaster over the last ten days, flirting with the 17-year low beneath the strong psychological mark of 0.6000. The pair has also increased distance below its negatively sloped moving average lines and the flattening Ichimoku cloud, indicating that the recent downtrend might hold for longer.
Momentum signals are bearish as well as the red Tenkan-sen line, which is below the blue kijun-sen line, and looks to be heading south, while the RSI remains in the oversold territory over the last week. Additionally, the MACD is extending its losing momentum beneath its trigger and zero lines. However, this downfall below the 30 level signals that the drop might come to an end.
Further declines may drive the price towards yesterday’s 17-year trough of 0.5958 before slipping to the critical level of the inside swing high of 0.5800, registered on July 2002. Below the latter, the 0.5400 handle – achieved on August 2001 – could come next.
In case the pair changes its direction to the upside, the bulls will probably challenge the 23.6% Fibonacci retracement level of the down leg from 0.7030 to 0.5958 at 0.6210. A break higher could last until the 0.6310 resistance and the 38.2% Fibonacci of 0.6370. Further up, the area around the 20-day simple moving average (SMA) of 0.6435 could be another potential obstacle for upward movements.
In brief, in the short-term window, the pair switched to a strongly negative mode after the plunge off 0.7030, while in the bigger picture, AUDUSD has been retaining the downward trend since July 2011.
Related Posts: