Technical Analysis – AUDUSD set to complete best week of the year
April 26, 2024 2:27 pm
AUDUSD set to close the week 2% higher, but still neutral in 2024
Next resistance near 0.6570; the 0.6640 bar could be tougher
AUDUSD is exhibiting its best week of the year, looking to extend its rally above the bearish channel and towards the next critical resistance zone of 0.6563, where the 200-day exponential moving average (EMA) and the broken support trendline from October 2023 are positioned.
After six consecutive green daily sessions, some stability or a pullback would not be a big surprise as the stochastic oscillator is already losing pace above its 80 overbought level. On the other hand, the RSI is making its way above its 50 neutral mark and the MACD continues to gain ground within the negative zone and above its red signal line, suggesting the resistance could come higher.
If the pair holds above 0.6525 and surpasses the wall at 0.6570, which coincides with the 50% Fibonacci retracement of the October-December 2023 uptrend, the bulls might run straight up to the critical 0.6625-0.6640 resistance. This has been a tough obstacle since the start of the year and the 38.2% Fibonacci mark is also within the neighborhood. Hence, a victory there might boost buying incentives towards the 23.6% Fibonacci of 0.6728.
On the downside, if the 0.6500-0.6475 territory does not protect the market, the price could slide towards the important base of 0.6400 and perhaps retest the five-month low of 0.6360 too. Even lower, the almost flat support trendline at 0.6315 could be another important pivot area, a break of which could see a test of the 2023 bottom of 0.6269.
In brief, AUDUSD might face some softness as the price approaches the caution area of 0.6570. For the outlook to switch to bullish, the pair will have to rally sustainably above 0.6640.
AUDUSD set to close the week 2% higher, but still neutral in 2024
Next resistance near 0.6570; the 0.6640 bar could be tougher
AUDUSD is exhibiting its best week of the year, looking to extend its rally above the bearish channel and towards the next critical resistance zone of 0.6563, where the 200-day exponential moving average (EMA) and the broken support trendline from October 2023 are positioned.
After six consecutive green daily sessions, some stability or a pullback would not be a big surprise as the stochastic oscillator is already losing pace above its 80 overbought level. On the other hand, the RSI is making its way above its 50 neutral mark and the MACD continues to gain ground within the negative zone and above its red signal line, suggesting the resistance could come higher.
If the pair holds above 0.6525 and surpasses the wall at 0.6570, which coincides with the 50% Fibonacci retracement of the October-December 2023 uptrend, the bulls might run straight up to the critical 0.6625-0.6640 resistance. This has been a tough obstacle since the start of the year and the 38.2% Fibonacci mark is also within the neighborhood. Hence, a victory there might boost buying incentives towards the 23.6% Fibonacci of 0.6728.
On the downside, if the 0.6500-0.6475 territory does not protect the market, the price could slide towards the important base of 0.6400 and perhaps retest the five-month low of 0.6360 too. Even lower, the almost flat support trendline at 0.6315 could be another important pivot area, a break of which could see a test of the 2023 bottom of 0.6269.
In brief, AUDUSD might face some softness as the price approaches the caution area of 0.6570. For the outlook to switch to bullish, the pair will have to rally sustainably above 0.6640.
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