Moves beneath 0.58 possible, 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, demand at 0.6358/0.6839 and 0.6094/0.5866 yielded last week, scoring seventeen-year lows at 0.5506.
Recent movement exposed another layer of demand at 0.5219/0.5426, potentially enticing further selling over the coming weeks, in line with the primary downtrend, lower since 2011.
Daily timeframe:
Partially altered from previous analysis -
After shedding more than 3.7% mid-week, AUD/USD ranged 450 points Thursday and wrapped up by way of a long-legged doji candle. This represents extreme indecision, with movement seen whipsawing through supply-turned demand at 0.5664/0.5798 and testing a well-grounded support level at 0.5563. Upside on this timeframe remains capped by a notable demand-turned supply base at 0.5926/0.6062, which contained downside (as demand) in October 2008.
With reference to the RSI indicator, we are trading from unparalleled oversold levels right now, with the value seen bottoming off 10.00.
H4 timeframe:
Partially altered from previous analysis -
As we fade seventeen-year lows, focus on the H4 timeframe remains on newly formed supplies. The latest area to grace the charts falls in around 0.6036/0.5978, which entered the fold on Friday, forcing moves to lows of 0.5746 into the close.
Above 0.6036/0.5978, technical research reveals another layer of supply rests nearby at 0.6147/0.6078, with a break exposing support-turned resistance at 0.6314.
H1 timeframe:
The Australian dollar found itself on reasonably strong footing vs. the buck in early Asia Friday, toppling 0.59 and testing a resistance area comprised of Fib studies, the widely watched psychological figure 0.60 and channel resistance (0.5794), at 0.60/05955 (green).
Boasting tight confluence, AUD/USD reclaimed earlier gains through London and the US sessions, eventually breaching channel support (0.5506) and settling a few points north of 0.58, in the shape of a picture-perfect bullish hammer candlestick pattern.
Meanwhile, technical indicators had the RSI recently crossing beneath 50.00.
Structures of Interest:
Long term:
The break of monthly demand at 0.6094/0.5866 commands attention, suggesting additional loss could be on the cards to demand at 0.5219/0.5426. Daily price, however, recently swerved to support at 0.5563 and holds within the walls of supply-turned demand at 0.5664/0.5798. The fact price closed in the form of a reasonably strong selling wick here, though, indicates a possibly soft market, in line with the primary downtrend.
Short term:
Higher-timeframe flow is further validated on the H4 timeframe, recently fading supply at 0.6036/0.5978. This suggests H1 price, although holding above 0.58 and printing a bullish candlestick signal, is unlikely to generate much to the upside, with a break beneath 0.58 perhaps on in store.
Breakout sellers south of 0.58, therefore, may initially target 0.57, with the possibility of reaching 0.56 and daily support underlined above at 0.5563.
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, demand at 0.6358/0.6839 and 0.6094/0.5866 yielded last week, scoring seventeen-year lows at 0.5506.
Recent movement exposed another layer of demand at 0.5219/0.5426, potentially enticing further selling over the coming weeks, in line with the primary downtrend, lower since 2011.
Daily timeframe:
Partially altered from previous analysis -
After shedding more than 3.7% mid-week, AUD/USD ranged 450 points Thursday and wrapped up by way of a long-legged doji candle. This represents extreme indecision, with movement seen whipsawing through supply-turned demand at 0.5664/0.5798 and testing a well-grounded support level at 0.5563. Upside on this timeframe remains capped by a notable demand-turned supply base at 0.5926/0.6062, which contained downside (as demand) in October 2008.
With reference to the RSI indicator, we are trading from unparalleled oversold levels right now, with the value seen bottoming off 10.00.
H4 timeframe:
Partially altered from previous analysis -
As we fade seventeen-year lows, focus on the H4 timeframe remains on newly formed supplies. The latest area to grace the charts falls in around 0.6036/0.5978, which entered the fold on Friday, forcing moves to lows of 0.5746 into the close.
Above 0.6036/0.5978, technical research reveals another layer of supply rests nearby at 0.6147/0.6078, with a break exposing support-turned resistance at 0.6314.
H1 timeframe:
The Australian dollar found itself on reasonably strong footing vs. the buck in early Asia Friday, toppling 0.59 and testing a resistance area comprised of Fib studies, the widely watched psychological figure 0.60 and channel resistance (0.5794), at 0.60/05955 (green).
Boasting tight confluence, AUD/USD reclaimed earlier gains through London and the US sessions, eventually breaching channel support (0.5506) and settling a few points north of 0.58, in the shape of a picture-perfect bullish hammer candlestick pattern.
Meanwhile, technical indicators had the RSI recently crossing beneath 50.00.
Structures of Interest:
Long term:
The break of monthly demand at 0.6094/0.5866 commands attention, suggesting additional loss could be on the cards to demand at 0.5219/0.5426. Daily price, however, recently swerved to support at 0.5563 and holds within the walls of supply-turned demand at 0.5664/0.5798. The fact price closed in the form of a reasonably strong selling wick here, though, indicates a possibly soft market, in line with the primary downtrend.
Short term:
Higher-timeframe flow is further validated on the H4 timeframe, recently fading supply at 0.6036/0.5978. This suggests H1 price, although holding above 0.58 and printing a bullish candlestick signal, is unlikely to generate much to the upside, with a break beneath 0.58 perhaps on in store.
Breakout sellers south of 0.58, therefore, may initially target 0.57, with the possibility of reaching 0.56 and daily support underlined above at 0.5563.