Technical Analysis – AUDUSD retreats from 4-month high
March 31, 2014 7:35 am
AUDUSD hit a four-month high of 0.9294 on March 28 but was unable to sustain gains at this level and has subsequently retreated. The daily RSI reached overbought levels on Friday before momentum eased slightly.
The market is currently resting just above the 50 % Fibonacci of the downleg from October 23 (0.9756) to January 24 (0.8659).
Prices have broken above the 200-day moving average which is a bullish signal and the MACD is in bullish territory above zero. At this point, the uptrend remains intact.
If there is a resumption in upside momentum the 61.8% Fibonacci level at 0.9335 will be targeted and above this the 0.9517 of the 78.6% Fibonacci.
Meanwhile to the downside, the 50% Fibonacci at 0.9208 is seen as an important support level. A break below this level could bring the pair under pressure and lead to further retracement towards the 38.2% Fibonacci level at 0.9074.
The 23.6% Fiboancci level at 0.8916 is important since there has been consolidation at this level in the month of February. There is also confluence of the 50-day moving average at this level, making support stronger.
There are no clear signals yet if the rally from March 20 will be reversing.
AUDUSD hit a four-month high of 0.9294 on March 28 but was unable to sustain gains at this level and has subsequently retreated. The daily RSI reached overbought levels on Friday before momentum eased slightly.
The market is currently resting just above the 50 % Fibonacci of the downleg from October 23 (0.9756) to January 24 (0.8659).
Prices have broken above the 200-day moving average which is a bullish signal and the MACD is in bullish territory above zero. At this point, the uptrend remains intact.
If there is a resumption in upside momentum the 61.8% Fibonacci level at 0.9335 will be targeted and above this the 0.9517 of the 78.6% Fibonacci.
Meanwhile to the downside, the 50% Fibonacci at 0.9208 is seen as an important support level. A break below this level could bring the pair under pressure and lead to further retracement towards the 38.2% Fibonacci level at 0.9074.
The 23.6% Fiboancci level at 0.8916 is important since there has been consolidation at this level in the month of February. There is also confluence of the 50-day moving average at this level, making support stronger.
There are no clear signals yet if the rally from March 20 will be reversing.
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