The Australian Dollar remained stable and gradually moving north against the US Dollar. During the middle of Wednesday’s trading, the currency pair breached the monthly and the weekly PPs near 0.7750.
Technical indicators flash bullish signals within this trading session. However, the exchange rate is located in the overbought zone. This might indicate a brief retracement south is possible today.
Furthermore, in terms of the downside potential, the AUD/USD currency exchange rate is likely to target a support set by either the 55-hour simple moving average or the 100– and the 200– hour SMAs.
Technical indicators flash bullish signals within this trading session. However, the exchange rate is located in the overbought zone. This might indicate a brief retracement south is possible today.
Furthermore, in terms of the downside potential, the AUD/USD currency exchange rate is likely to target a support set by either the 55-hour simple moving average or the 100– and the 200– hour SMAs.
Comment:
The situation on the AUD/USD charts after the breaking of various trend lines had not become clear in the second part of Tuesday’s trading session.
It seemed like the pair was after all still affected by the most dominant resistance line, as the pair had bounced off of it twice during the last twenty four hours. In addition, the currency rate is being frequently affected by the 55 and 100-hour simple moving averages.
However, by the time of writing the SMAs and trend lines were above the currency exchange rate. Moreover, the pair had no support as low as 0.7743. Due to that a decline was expected.
It seemed like the pair was after all still affected by the most dominant resistance line, as the pair had bounced off of it twice during the last twenty four hours. In addition, the currency rate is being frequently affected by the 55 and 100-hour simple moving averages.
However, by the time of writing the SMAs and trend lines were above the currency exchange rate. Moreover, the pair had no support as low as 0.7743. Due to that a decline was expected.
Namely, it can be seen that previously drawn trend lines are providing only a minor impact on Monday, as the pair is being guided by the pivot points and the 55 and 100–hour SMAs.
Meanwhile, it can be seen that the rate is about to get squeezed near the 0.7780 mark. That squeeze should result in a break out to either of the possible directions.