AUSTRALIAN DOLLAR WEEKLY TECHNICAL OUTLOOK – AUDUSD, AUDJPY, EURAUD:
The Australian Greenback retains climbing increased, however the current ascent could also be operating out of steamAUDUSD and AUDJPY face critical technical obstacles for development continuation whereas EURAUD could possibly be gearing up for a reversalTrying to study extra in regards to the foreign money market? Try our free academic information on Foreign exchange Trading
Australian Greenback worth motion has notched a formidable rally up to now this month. Actually, the near-vertical ascent in AUDUSD during the last 10 trading days marks the strongest stretch of beneficial properties over the identical lookback interval since January. But, technical confluence across the zero.6900 deal with seems to be presenting itself as an impediment for development continuation within the Australian Greenback as upside turns sluggish. On the identical time, the RSI is operating scorching because the Australian Greenback approaches a studying of 70 and “oversold” territory whereas the MACD may counsel upward momentum is fading.
AUDUSD PRICE CHART: DAILY TIME FRAME (APRIL 11, 2019 TO SEPTEMBER 13, 2019)
If AUDUSD worth motion can proceed increased into subsequent week, nonetheless, the July swing low round zero.6915 is perhaps focused as the following upside goal earlier than resistance posed by the midpoint retracement degree of the foreign money pair’s trading vary since April comes into consideration. Trying to the draw back, spot AUDUSD has potential to search out assist from its 50-day easy transferring common and June swing low round zero.6835. Main resistance-turned-support on the zero.6800 deal with will probably be eyed subsequently by AUDUSD bears if the aforementioned technical ranges fail to maintain the Australian Greenback afloat.
AUDJPY PRICE CHART: DAILY TIME FRAME (APRIL 12, 2019 TO SEPTEMBER 13, 2019)
Australian Greenback beneficial properties have been significantly putting when taking a look at AUDJPY. The notorious sentiment-linked foreign money pair has soared as US-China commerce tensions thaw which has boosted danger urge for food and helped propel spot AUDJPY to its highest degree since August 1. The sharp rebound increased within the Australian Greenback has moved with such conviction it was sufficient to smash by way of bearish development resistance prolonged from the swing highs in April and July.
Spot AUDJPY now treads comfortably above the 74.000 deal with – an space of technical confluence underscored by the June swing low and 38.2% Fibonacci retracement degree of its year-to-date trading vary – which Aussie bulls will probably look to carry as worth motion unfolds. Under this space, the 50-DMA and just lately shaped uptrend line even have potential to supply assist.
EURAUD PRICE CHART: DAILY TIME FRAME (APRIL 12, 2019 TO SEPTEMBER 13, 2019)
Final however not least, the technical backdrop on spot EURAUD is kind of intriguing. The bullish wick printed within the wake of the September ECB assembly is a bit discouraging for these anticipating additional draw back in spot EURAUD. Additionally, the RSI bouncing off “oversold territory” and converging transferring averages prompt by the MACD indicator each converse to the potential reversal increased could also be within the making. If EURAUD can agency its footing above the 1.6100 mark and 61.eight% Fibonacci retracement degree of its 2019 trading vary, spot costs might be able to march increased and check the 1.6200 worth degree. This space of resistance is underscored by the 50% retracement of its year-to-date vary along with its 20-DMA and 50-DMA.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
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