The Australian Dollar versus the US Dollar has declined massively since the end of August. The currency pair pulls back from the upper boundary of a junior descending channel on August 29 and followed by a period of decline.
Given that the exchange rate is trading near the upper boundary of the junior descending channel, a breakout could occur within this session. Moreover, the US CPI and Core CPI macroeconomic data releases scheduled at 12:30 GMT could influence the movement of the pair to either direction today.
However, since the three moving averages have fallen below the price, upside risk potential is still apparent in regards to this currency pair.
Given that the exchange rate is trading near the upper boundary of the junior descending channel, a breakout could occur within this session. Moreover, the US CPI and Core CPI macroeconomic data releases scheduled at 12:30 GMT could influence the movement of the pair to either direction today.
However, since the three moving averages have fallen below the price, upside risk potential is still apparent in regards to this currency pair.
Comment:
Downside risks prevailed in the market on Friday, thus sending the AUD/USD currency pair to plummet by 0.97%.
The exchange rate is currently trading in two opposite channel patterns, and the most important of the channels is the medium-term ascending channel. Furthermore, a support cluster formed by the combination of the 100– and 200-hour SMAs and the weekly pivot point at 0.7156 was proving support for the rate at the time of this analysis.
Everything being equal, it is likely that the currency exchange rate passes the 50-hour simple moving average at 0.7181 and aims for the upper boundary of a junior descending channel within this session.
The exchange rate is currently trading in two opposite channel patterns, and the most important of the channels is the medium-term ascending channel. Furthermore, a support cluster formed by the combination of the 100– and 200-hour SMAs and the weekly pivot point at 0.7156 was proving support for the rate at the time of this analysis.
Everything being equal, it is likely that the currency exchange rate passes the 50-hour simple moving average at 0.7181 and aims for the upper boundary of a junior descending channel within this session.
Comment:
The AUD/USD currency pair managed to regain some ground following a reversal from the medium-term and the weekly pivot point at 0.7156.
Presently, the Australian Dollar versus the US Dollar is moving towards the weekly resistance level at 0.7228.
Two scenarios are likely to happen within this session. Firstly, if the resistance line above holds, the exchange rate could make brief retracement south.
Second, if the price breach the resistance level, bullish traders is likely to push the currency exchange rate higher towards the upper boundary of the medium-term ascending channel at 0.7275.
Presently, the Australian Dollar versus the US Dollar is moving towards the weekly resistance level at 0.7228.
Two scenarios are likely to happen within this session. Firstly, if the resistance line above holds, the exchange rate could make brief retracement south.
Second, if the price breach the resistance level, bullish traders is likely to push the currency exchange rate higher towards the upper boundary of the medium-term ascending channel at 0.7275.
Comment:
The Australian Dollar has continued its bullish momentum against the US Dollar on Thursday. The currency pair appreciated by 43 pips during the end of the previous trading session.
Two scenarios are likely to happen to this exchange rate in the coming hours. Firstly, the pair could breakout through the upper boundary on a two-week ascending channel and aim at the weekly R3 at 0.7373.
Secondly, the weekly R2 at 0.7301 might prove to be very strong and pushes the currency exchange rate south towards a support cluster formed by the combination of the weekly pivot point and the 100-hour SMA at the 0.7235 mark.
Two scenarios are likely to happen to this exchange rate in the coming hours. Firstly, the pair could breakout through the upper boundary on a two-week ascending channel and aim at the weekly R3 at 0.7373.
Secondly, the weekly R2 at 0.7301 might prove to be very strong and pushes the currency exchange rate south towards a support cluster formed by the combination of the weekly pivot point and the 100-hour SMA at the 0.7235 mark.
The Australian Dollar gained about 35 base points against the US Dollar during the first part of Friday’s session. Furthermore, the 50-hour simple moving average is currently guiding the pair higher.
Given that technical indicators is located in the overbought territory, the currency exchange rate might make a brief retracement south during the following trading session.