0.66 offering a potential reversal zone stacked with confluence
AUD/USD:
Monthly timeframe:
Outlook brought forward from previous analysis –
Demand at 0.6358/0.6839 remains in the fight, yet struggling to chalk up anything meaningful to the upside. An eventual break of the said demand zone has another layer of demand close by at 0.6094/0.5866, while a recovery could lead to trendline support-turned resistance (0.4776) making an appearance, followed by supply at 0.8303/0.8082.
Currently, the pair trades -1.20% on the month.
Daily timeframe:
Down nearly 1.00%, Thursday, by way of a near-full-bodied bearish candle, dug in and drove into supply-turned demand at 0.6642/0.6520. Note we’re now trading at decade lows.
0.6642/0.6520 is a bulky zone and fills a large portion of the current monthly demand highlighted above at 0.6358/0.6839.
The RSI, for those who follow indicators, recently re-entered oversold territory, after failing to reach the 50.0 mid-way value.
H4 timeframe:
Recent action on the H4 timeframe, thanks to yesterday’s downside, now has eyes for an area of support comprised of Fibonacci studies (161.8% Fibonacci ext. point and the 127.2% Fibonacci ext. point – green) between 0.6591/0.6606. Trendline support-turned resistance (0.6683), however, could hinder any upside attempts.
H1 timeframe:
Following a near to-the-point retest at 0.6650, AUD/USD journeyed to multi-year lows ahead of the 0.66 handle in the shape of a descending wedge pattern (0.6654/0.6630). In terms of the RSI indicator, mild bullish divergence is seen forming out of oversold terrain.
Direction:
The fact we have monthly price trading within demand at 0.6358/0.6839, daily price also recently entering an area of demand, H4 price circling ahead of Fibonacci support (green) at 0.6591/0.6606 and the H1 candles declining by way of a falling wedge pattern towards 0.66 support, a rebound from the 0.66 region could be at hand today, with the underside of the H4 trendline support-turned resistance set as the initial upside target.
Monthly timeframe:
Outlook brought forward from previous analysis –
Demand at 0.6358/0.6839 remains in the fight, yet struggling to chalk up anything meaningful to the upside. An eventual break of the said demand zone has another layer of demand close by at 0.6094/0.5866, while a recovery could lead to trendline support-turned resistance (0.4776) making an appearance, followed by supply at 0.8303/0.8082.
Currently, the pair trades -1.20% on the month.
Daily timeframe:
Down nearly 1.00%, Thursday, by way of a near-full-bodied bearish candle, dug in and drove into supply-turned demand at 0.6642/0.6520. Note we’re now trading at decade lows.
0.6642/0.6520 is a bulky zone and fills a large portion of the current monthly demand highlighted above at 0.6358/0.6839.
The RSI, for those who follow indicators, recently re-entered oversold territory, after failing to reach the 50.0 mid-way value.
H4 timeframe:
Recent action on the H4 timeframe, thanks to yesterday’s downside, now has eyes for an area of support comprised of Fibonacci studies (161.8% Fibonacci ext. point and the 127.2% Fibonacci ext. point – green) between 0.6591/0.6606. Trendline support-turned resistance (0.6683), however, could hinder any upside attempts.
H1 timeframe:
Following a near to-the-point retest at 0.6650, AUD/USD journeyed to multi-year lows ahead of the 0.66 handle in the shape of a descending wedge pattern (0.6654/0.6630). In terms of the RSI indicator, mild bullish divergence is seen forming out of oversold terrain.
Direction:
The fact we have monthly price trading within demand at 0.6358/0.6839, daily price also recently entering an area of demand, H4 price circling ahead of Fibonacci support (green) at 0.6591/0.6606 and the H1 candles declining by way of a falling wedge pattern towards 0.66 support, a rebound from the 0.66 region could be at hand today, with the underside of the H4 trendline support-turned resistance set as the initial upside target.