We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • US Equities Update (Friday Close): $DJI +0.01% $SPX -0.01% $NDX +0.25% $RTY -0.57% $VIX -9.18%
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.30% France 40: 0.27% Wall Street: 0.00% US 500: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gcAsEkyGoZ
  • Trump sends USMCA legislation to Congress -BBG
  • RT @Schuldensuehner: #Fed aims a half-trillion Dollar liquidity capacity at year-end risks while balance sheet has already jumped to almost…
  • RT @LiveSquawk: Fed's Clarida speaking on Fox Business: - Rate cuts were by the book in reesponse to econ weakness - Recession fears were o…
  • RT @EdwardLawrence: A Senior Administration Official says the actual Phase One deal will be signed the first week of January. That Official…
  • What's the difference between leading and lagging indicators? Find out here: https://t.co/cv33y147qh https://t.co/btZmHaQz52
  • The Canadian Government will give an update to it's fiscal policy on Monday according to administration officials $CAD
  • The daily crude #oil price chart remains positive with a series of higher highs and higher lows being made off the October 3 low print at $50.94/bbl. Get your market update from @nickcawley1 here: https://t.co/88MsN2zvo8 #OOTT https://t.co/duE2goyGBy
  • RT @StockBoardAsset: 13 Dec - 02:59:02 PM - U.S. SENATE REPUBLICAN LEADER MCCONNELL SAYS TWO ARTICLES OF IMPEACHMENT IN HOUSE ARE 'PRETTY…
AUDUSD Well-Placed to Bounce Higher

AUDUSD Well-Placed to Bounce Higher

2018-08-16 14:10:00
Martin Essex, MSTA, Analyst and Editor
Share:

AUDUSD technical analysis:

  • AUDUSD has been in a downtrend for most of this year.
  • However, having reached trendline support, it could be ready to rally.

Our trading forecasts for Q3 have been published; you can find them here.

And check out the IG Client Sentiment data to help you trade profitably.

AUDUSD ready to tick higher

AUDUSD has traded in a well-defined downward channel since late January this year. Now, having hit the channel support line, which has already limited the downside several times, it looks ready to edge up again towards the middle of the channel and perhaps as far as the resistance line.

AUDUSD Price Chart, Daily Timeframe (January 12 – August 16, 2018)

Latest AUDUSD price chart.

Chart by IG

As the chart above shows, the support line sits currently at 0.7214 and the price has already this session bounced from it to 0.7275 at the time of writing. If that rally continues, there will be several near-term targets in sight: the 20-day moving average at 0.7362, the 50-day moving average at 0.7385 and then the trendline resistance at 0.7425.

While that will be hard to break through, a climb above it would bring the August 9 high at 0.7454 and the 100-day moving average at 0.7464 into view.

Note, though, that a drop below trendline support at 0.7214 could bring steep losses so from a trading perspective it would be wise to place a stop just below there, perhaps at the 0.72 “round number”.

AUDUSD fundamentals

From a fundamental perspective, any rally would reflect the latest improvement in market sentiment, which has prompted a rally in “risk on” assets like the Australian Dollar against “safe havens” like its US counterpart.

Note that AUD is seen sometimes as a proxy for China and has therefore been helped by news that US-China trade talks will resume later this month – a development that could lead eventually to a ceasefire.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.