AUD/USD reaches targeted support
The previously expected decline of the Australian Dollar against the US Dollar occurred on Wednesday morning. However, before the target area of 0.7750 was reached, the pair lingered horizontally for most part of Tuesday’s trading.
After reaching the 0.7750 mark the rate found support and began a surge, which from a technical perspective was caused by the 200-hour simple moving average.
The rebound has provided a reference point for pattern drawing. By using this low level and another previous low a channel down pattern can be mapped. It is likely that this channel will hold its ground because its resistance line is set to be strengthened by the declining 55 and 100-hour simple moving averages.
After reaching the 0.7750 mark the rate found support and began a surge, which from a technical perspective was caused by the 200-hour simple moving average.
The rebound has provided a reference point for pattern drawing. By using this low level and another previous low a channel down pattern can be mapped. It is likely that this channel will hold its ground because its resistance line is set to be strengthened by the declining 55 and 100-hour simple moving averages.
Comment:
The Australian Dollar has plummeted during the last 24 hours against the US Dollar as a brick. Initially it was thought that a strong support cluster near the 0.7780 mark will hold the ground. At that level the support of a new medium term pattern was located at together with the 55 and 100-hour SMAs.
In addition, a support line of a previously active descending channel managed to slow down the fall. However, after less than ten hours, it was passed.
The next target from a technical perspective for the rate was the weekly first support at the 0.7675 mark.
In addition, a support line of a previously active descending channel managed to slow down the fall. However, after less than ten hours, it was passed.
The next target from a technical perspective for the rate was the weekly first support at the 0.7675 mark.
Namely, the next high level to be reached is the resistance of the 0.7830 mark. At that level the weekly R1 is located at.
Meanwhile, the rate was set to decline during the second half of Thursday’s trading, as the pair was heading for the combined support of the 55 and 100-hour SMAs, which are moving higher together with the support line of the newly discovered channel.