AUD/USD Trades In Uptrend Mode
JFD Team | Apr 29, 2020 07:22AM ET
AUD/USD traded higher today, but hit resistance near the 0.6545 barrier and then it pulled back. Overall, the price structure remains of higher highs and higher lows above an upside support line drawn from the low of March 20th, and thus, we would consider the near-term outlook to be positive for now.
The current setback may continue for a while more, but the bulls may wake up near the crossroads of the upside line and the 0.6435 zone. They may pull the trigger for another test near the 0.6545 barrier, the break of which may set the stage for extensions towards the high of March 9th, at around 0.6680.
Taking a look at our short-term oscillators, we see that the RSI turned down and just exited its above-70 zone, while the MACD, although above both its zero and trigger lines, shows signs of topping. It could fall back below its trigger soon. Both indicators detect slowing upside speed and corroborate our view with regards to a minor setback before the next leg north.
Having said all that, in order to start examining whether the bears have gained the upper hand, we would like to see a dip below 0.6335. The rate would already be below the aforementioned upside support line and may initially aim for the next key support, at around 0.6265. If the bears are not willing to stop there, the next area to watch out for may be the low of April 9th, at around 0.6195. Another break, below 0.6195, could see scope for extensions towards the low of the day before, at 0.6115.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.