0.64 may offer support today, traders...
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, the month of March scored seventeen-year lows at 0.5506 ahead of demand pencilled in from 0.5219/0.5426, before staging an impressive recovery.
April’s 370-pip advance has, as you can see, landed May within striking distance of supply fixed at 0.7029/0.6664, an area intersecting with a long-term trendline resistance (1.0582).
Regarding the market’s primary trend, a downtrend has been present since mid-2011.
Daily timeframe:
Partially altered from previous analysis -
Since addressing supply at 0.6618/0.6544 Friday, the daily candles have been languishing south of the said zone. It should also be emphasised the current supply area comes with a 127.2% Fib ext. level at 0.6578 and a nearby 161.8% Fib ext. level at 0.6642. Traders may include the 200-day simple moving average (SMA) here seen around 0.6667.
Despite sellers attempting to make a show off current supply, the fact we failed to print fresh lows out of this zone at the end of April, as well as price action forming a series of higher highs/lows since testing 0.5506, may fuel buyers.
H4 timeframe:
Brought forward from previous analysis -
Demand at 0.6356/0.6384 along with supply formed from 0.6581/0.6545 remain dominant fixtures on the H4 timeframe. Technically, the aforementioned demand is encased within 0.6351/0.6395, an area made up of 161.8% and 127.2% Fib ext. levels. Fibonacci followers will also note a 61.8% Fib level resides within the said demand at 0.6373.
H1 timeframe:
As the US dollar index voyaged back above 100.00, a wave of intraday selling unfolded after whipsawing through buy-stop liquidity above 0.65. Heading into Thursday’s session, buyers and sellers are seen squaring off around 0.6450. Risk of further decline is high, with demand at 0.6411/0.6423 on the radar and the 0.64 handle which aligns with trendline support (0.6372).
Structures of Interest:
Additional selling today is likely to overwhelm buyers at H1 demand from 0.6411/0.6423, in favour of the more appealing 0.64 handle.
0.64 not only joins closely with H1 trendline support, the psychological boundary also merges closely with the 127.2% Fib ext. level at 0.6395 on the H4 timeframe.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, the month of March scored seventeen-year lows at 0.5506 ahead of demand pencilled in from 0.5219/0.5426, before staging an impressive recovery.
April’s 370-pip advance has, as you can see, landed May within striking distance of supply fixed at 0.7029/0.6664, an area intersecting with a long-term trendline resistance (1.0582).
Regarding the market’s primary trend, a downtrend has been present since mid-2011.
Daily timeframe:
Partially altered from previous analysis -
Since addressing supply at 0.6618/0.6544 Friday, the daily candles have been languishing south of the said zone. It should also be emphasised the current supply area comes with a 127.2% Fib ext. level at 0.6578 and a nearby 161.8% Fib ext. level at 0.6642. Traders may include the 200-day simple moving average (SMA) here seen around 0.6667.
Despite sellers attempting to make a show off current supply, the fact we failed to print fresh lows out of this zone at the end of April, as well as price action forming a series of higher highs/lows since testing 0.5506, may fuel buyers.
H4 timeframe:
Brought forward from previous analysis -
Demand at 0.6356/0.6384 along with supply formed from 0.6581/0.6545 remain dominant fixtures on the H4 timeframe. Technically, the aforementioned demand is encased within 0.6351/0.6395, an area made up of 161.8% and 127.2% Fib ext. levels. Fibonacci followers will also note a 61.8% Fib level resides within the said demand at 0.6373.
H1 timeframe:
As the US dollar index voyaged back above 100.00, a wave of intraday selling unfolded after whipsawing through buy-stop liquidity above 0.65. Heading into Thursday’s session, buyers and sellers are seen squaring off around 0.6450. Risk of further decline is high, with demand at 0.6411/0.6423 on the radar and the 0.64 handle which aligns with trendline support (0.6372).
Structures of Interest:
Additional selling today is likely to overwhelm buyers at H1 demand from 0.6411/0.6423, in favour of the more appealing 0.64 handle.
0.64 not only joins closely with H1 trendline support, the psychological boundary also merges closely with the 127.2% Fib ext. level at 0.6395 on the H4 timeframe.