Previous: AUD/USD Trading at the Crossroad of Converging Support and Resistance (2/16)
AUD/USD
The 4H AUD/USD chart shows that a rising trendline extending back to Dec. 16 was respected as support, but the counter-trend resistance did not hold. Price action has already shown breakout above the 1.0780 pivot as well as rising back up above the group of moving averages (100,55,21,8). The bullish continuation is very likely, and the current throwback can help confirm. The upside target would be first the high near 1.0840, then 1.1 above that.
The 1H chart shows the throwback now at a confluence of support factors. The 1.0740-1.0745 level includes a pivot seen earlier in February, the 38.2% retracement of the latest upswing, the 200 hour simple moving average, and the broken resistance. Holding here should help confirm the bullish outlook, but not holding does not necessarily invalidate it. The bullish outlook still looks clear above 1.0720, 50% retracement. It’s unclear below that, and the bearish outlook opens up below 1.07, although confirmation is needed from a break below the 1.0646 pivot. A break below this opens up the 1.0530-1.0550 support zone.
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Fan Yang CMT is the Chief Technical Strategist for IBTRADE, educator trader and main contributor for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
