Interesting price action forming on AUD/USD
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 yielded last week, after capping downside since 2016. Overwhelmed by the effects of coronavirus, the pair recently refreshed multi-year lows, registering losses nearing 8.00% so far in March and testing demand at 0.6094/0.5866, an area formed in 2003 that held price higher in late 2008.
Since 2011, the primary trend in this market has faced a southerly bearing.
Daily timeframe:
Partially altered from previous analysis -
After AUD/USD powered through demand at 0.6330/0.6245 last week, the pair has since retested 0.6330/0.6245 as supply, challenged lows at 0.5958 and entered the walls of demand coming in at 0.5926/0.6062 (located within monthly demand at 0.6094/0.5866).
In terms of the RSI indicator, given the predominant downtrend in this market, the value continues to run through oversold terrain, unable to breach 50.0 to the upside.
H4 timeframe:
As we fade lows not seen since 2003, a newly formed supply zone rests nearby at 0.6147/0.6078. Above here, technical research shows limited supply in view until connecting with resistance at 0.6314.
H1 timeframe:
Despite a bounce in risk sentiment, AUD/USD took its cues from the mighty buck Tuesday, diving through 0.61 and 0.6050. A 161.8% Fib ext. level entered play at 0.5959 and so far established support, with price threatening a revisit to the underside of 0.6050. It should be emphasised that 0.6050 aligns closely with a local channel resistance (0.6385) and a more broader channel support-turned resistance (0.6463), denoted by a green zone.
In addition to the above, RSI momentum trades at 40.00, after recovering from a trough located deep within oversold terrain at 21.50.
Structures of Interest:
Keeping things simple this morning, the combination of 0.6050 on the H1 timeframe and converging channel resistances, along with the lower edge of H4 supply stationed at 0.6078, could appeal to sellers today. Note any short positions taken here, although in line with the primary downtrend, entails entering short into higher-timeframe demand.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 yielded last week, after capping downside since 2016. Overwhelmed by the effects of coronavirus, the pair recently refreshed multi-year lows, registering losses nearing 8.00% so far in March and testing demand at 0.6094/0.5866, an area formed in 2003 that held price higher in late 2008.
Since 2011, the primary trend in this market has faced a southerly bearing.
Daily timeframe:
Partially altered from previous analysis -
After AUD/USD powered through demand at 0.6330/0.6245 last week, the pair has since retested 0.6330/0.6245 as supply, challenged lows at 0.5958 and entered the walls of demand coming in at 0.5926/0.6062 (located within monthly demand at 0.6094/0.5866).
In terms of the RSI indicator, given the predominant downtrend in this market, the value continues to run through oversold terrain, unable to breach 50.0 to the upside.
H4 timeframe:
As we fade lows not seen since 2003, a newly formed supply zone rests nearby at 0.6147/0.6078. Above here, technical research shows limited supply in view until connecting with resistance at 0.6314.
H1 timeframe:
Despite a bounce in risk sentiment, AUD/USD took its cues from the mighty buck Tuesday, diving through 0.61 and 0.6050. A 161.8% Fib ext. level entered play at 0.5959 and so far established support, with price threatening a revisit to the underside of 0.6050. It should be emphasised that 0.6050 aligns closely with a local channel resistance (0.6385) and a more broader channel support-turned resistance (0.6463), denoted by a green zone.
In addition to the above, RSI momentum trades at 40.00, after recovering from a trough located deep within oversold terrain at 21.50.
Structures of Interest:
Keeping things simple this morning, the combination of 0.6050 on the H1 timeframe and converging channel resistances, along with the lower edge of H4 supply stationed at 0.6078, could appeal to sellers today. Note any short positions taken here, although in line with the primary downtrend, entails entering short into higher-timeframe demand.