Technical Bias: Bearish
Key Takeaways
• Australian dollar recovers some ground after trading as low as 0.9331 against the US dollar.
• There are several resistance levels towards the upside for the AUDUSD pair.
• AUDUSD support seen at 0.9330 and resistance ahead at 0.9380.
The AUDUSD pair looks like is under a short-term correction, which could lead the pair towards the 0.9380 resistance area where sellers might appear again.
Technical Analysis
There is an important bearish trend line formed on the hourly timeframe for the AUDUSD pair, which is connecting all recent swing highs. Currently, the pair is flirting with the 50 hourly simple moving average, and if the Aussie buyers manage to settle above the same, then a run towards a critical confluence area of 100 and 200 hourly SMA’s is quite possible in the short term. This is where sellers are likely to take a stand to protect further upside in the AUDUSD pair. If they fail to do so, then the pair might challenge the highlighted bearish trend line. One key point to note is that the same trend line is also coinciding with the 50% Fibonacci retracement level of the last drop from the 0.9459 high to 0.9331 low. So, it represents a major resistance area for the pair, and a break above the same could be very difficult considering the current market sentiment.
On the downside, there is hardly any hurdle for the Aussie sellers except for the yesterday’s low of 0.9331. A break below the mentioned level might trigger more losses in the pair may be towards the 0.9300 support area.
NAB Quarterly Business Confidence
Earlier during the Asian session, the National Australia Bank (NAB) Quarterly Business Confidence was released. The outcome was fairly mixed, as the index registered a reading of 6, and the previous one was revised up from 6 to 7. So, there was a net decline this time. The AUDUSD pair remained mostly unchanged after the data release.
Forex Analysis: AUD/USD Poised to Retake 2014 Highs?
