You are here: Home > articles > Forex > Technical Analysis – AUDUSD remains in sideways channel; bearish outlook in medium term
Technical Analysis – AUDUSD remains in sideways channel; bearish outlook in medium term
August 8, 2018 7:26 amVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
AUDUSD has been struggling within a consolidation area during the last seven weeks with upper boundary the 0.7475 resistance level and lower boundary the 18-month low of 0.7310. Furthermore, the pair successfully surpassed the 20- and 40-simple moving averages (SMAs) in the daily timeframe.
Technically, momentum indicators are endorsing the neutral to bullish movement in the market. The RSI indicator is flattening and stands near the threshold of 50, however, the MACD oscillator is moving higher in the negative territory above its trigger line and is approaching the zero line with weak momentum. Also, the SMAs are ready to record a bullish crossover in the near term.
Moving higher, the first resistance for investors to have in mind is the upper boundary (0.7475). If there is a jump above this region, the price could challenge the 23.6% Fibonacci retracement level of 0.7505 of the downleg from 0.8135 to 0.7310, increasing the chances for a bullish retracement. Above this barrier, if there is an upside penetration of the falling trend line, the focus shifts to the upside until the 38.2% Fibonacci of 0.7625.
However, if the price slips below the moving averages, this could open the way towards the 18-month low (0.7310). Further downside extensions could drive the pair until the 0.7160 hurdle, where it bottomed on December 2016.
To conclude, in the bigger picture, AUDUSD has been trading within a descending move since January 26, however, in the short-term price action endorses the scenario for a sideways move but it also remains below the downtrend line.
Related Posts: