Following a breakout of the 55–, 100-, and 200– hour simple moving averages on Tuesday, downside risks prevailed and thus drove the AUD/USD currency pair down to the lower boundary of a dominant ascending channel.
However, this decline has been temporarily stopped by the monthly pivot point at 0.7514 during the European trading session on Tuesday.
As for near future, the exchange rate movement should nevertheless be tended upwards during the following trading session. If and when this bullish move occurs, the currency exchange rate could encounter a resistance cluster set by the combination of the aforementioned SMAs located near the 0.7553 mark.
However, this decline has been temporarily stopped by the monthly pivot point at 0.7514 during the European trading session on Tuesday.
As for near future, the exchange rate movement should nevertheless be tended upwards during the following trading session. If and when this bullish move occurs, the currency exchange rate could encounter a resistance cluster set by the combination of the aforementioned SMAs located near the 0.7553 mark.
Comment:
After hitting this week low level of 0.74 early Wednesday’s the AUD/USD exchange rate started to gain strength. This surge was caused by the general weakness of the US Dollar. As a result, the pair dashed through the 55-, 100-, and 200– hour SMAs and the weekly pivot points.
During the European trading session on Thursday, the 200– hour simple moving average was providing support for the pair.
Everything being equal, the currency exchange rate is likely to maintain it narrow ascending pattern today. However, technical indicators demonstrate that a strong bearish sentiment might come into play within the next session.
During the European trading session on Thursday, the 200– hour simple moving average was providing support for the pair.
Everything being equal, the currency exchange rate is likely to maintain it narrow ascending pattern today. However, technical indicators demonstrate that a strong bearish sentiment might come into play within the next session.
Comment:
The AUD/USD exchange rate closed Thursday’s trading session finding support at the 200– hour simple moving average. The aforementioned SMA has been providing support for the pair since May 30.
By the early hours of Friday’s session, the price movement finally breached the support level formed by the moving average. Furthermore, the currency pair has bounced off the 50.00% Fibonacci retracement level. This retracement can be measured by connecting the low at 0.74 and the high at 0.75.
Everything being equal, it is expected that the currency exchange rate makes an upside moves during the following session for a potential target at 0.75 which is the weekly pivot point.
By the early hours of Friday’s session, the price movement finally breached the support level formed by the moving average. Furthermore, the currency pair has bounced off the 50.00% Fibonacci retracement level. This retracement can be measured by connecting the low at 0.74 and the high at 0.75.
Everything being equal, it is expected that the currency exchange rate makes an upside moves during the following session for a potential target at 0.75 which is the weekly pivot point.
By the middle of the European session, the Aussie has gained 62 pips against the Greenback.
Given that the bullish sentiment is dominating this session, it seems that there might be some upside potential within the next hours.
Meanwhile, the overall market sentiment still remains bearish for this week; therefore, the pair is likely to reverse south for a possible re-test of the lower boundary of an ascending channel.