AUDUSD breaks above key resistance at 0.6656, but fails to sustain bullish momentum

Technical Analysis

The AUDUSD broke above its 200-day moving average of 50% midpoint of the move down from the July 2023 high on Monday (near 0.65824). The pair also moved above the high of a swing area at 0.6595. That area between 0.6582 and 0.6595 is now support. If the technical bias is to increase more to the downside, getting below those levels is needed.

On the topside, yesterday the move higher extended above the 61.8% retracement of the same move lower at 0.66561. The pair could not close above that level but tried again in today’s session only to fail again.

With 2 fails above the 61.8% retracement on 2 consecutive days, that level is now going to be resistance going forward. It would take a move above that level to increase a bullish bias.

With US PCE data due out tomorrow in the United States, that data point may be stalling some of the currency pairs today as traders head ahead of that key inflation data. With Fed officials showing some wishy-washy feelings (with some being a little bit more hawkish, while others being a little bit more dovish), it is not surprising for the pair to settle between key support below at 0.65824, and key resistance above at 0.6656.

Articles You May Like

Learn with ETMarkets: How to trade in crude oil amid market volatility?
Sentiment Stabilization Reverses Yen Gains and Halts Gold’s Rebound
Credit Agricole: 2025 will not be a repeat of the USD’s 2018 rally
USDCHF Technical Analysis – Will the US Dollar reach new highs?
Gold prices continue to drop amid a strong dollar and US inflation concerns; check rates in your city

Leave a Reply

Your email address will not be published. Required fields are marked *