AUD/USD’s Bullish Bias Could End

Published 02/03/2022, 04:10 AM
AUDUSD found strong support at the 18-month trough of 0.6965 in the previous week, rallying towards the 20-day simple moving average (SMA).

 However, the RSI indicator is suggesting a weakening bias as it is turning lower in the negative region, while the MACD is still holding below the zero level but is strengthening its positive move.

Should the price retreat, the 0.6990 barrier and the 18-month low of 0.6965, which the bears were unable to break the previous week, could provide immediate support. Moving lower, the focus will shift to the 0.6775 restrictive area, taken from the low in June 2020.

In the alternative scenario, traders would be eagerly looking for a break above yesterday’s top near the 20-day SMA of 0.7155 to increase buying orders. If that’s the case, the rally could last until 0.7270, the upper surface of the Ichimoku cloud. If bullish forces appear even stronger, 0.7315 and the 200-day SMA at 0.7380 should be additional resistance levels to keep in mind.

The recent bullish action turned the short-term view to slightly positive, though the bigger picture is still negative and only an advance above the 200-day SMA may change this outlook. 
 AUDUSD

Latest comments

Risk Disclosure: 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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.