News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Fed's regional Presidents to be given new 5 year terms starting March 1 - BBG
  • Heads Up:🇳🇿 Business NZ PMI (DEC) due at 21:30 GMT (15min) Previous: 55.3 https://www.dailyfx.com/economic-calendar#2021-01-21
  • S&P 500 closes at a record high, yet only 3 sectors were positive during trade - BBG
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.19% Germany 30: 0.08% US 500: -0.01% Wall Street: -0.01% France 40: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/QZUIIYJi3l
  • Consensus expectation by analysts and economists prevailed as the SARB kept rates untouched at 3.5%. How has this impacted $USDZAR? Find out from @WVenketas here:https://t.co/AXZk3JbBD7 https://t.co/MVwnbOBnHk
  • President Biden: -Vaccine rollout has been a dismal failure thus far -Things will get worse before they get better -Coronavirus death toll in US likely to top 500,000 next month -Plan to tackle covid outlines 100 million shots over 100 days $USD $SPX
  • The US Dollar recovery has stalled at resistance and the immediate focus is on this pullback as the index approaches near-term uptrend support .Get your $USD technical analysis from @MBForex here:https://t.co/lg6pFomGNb https://t.co/V7ENE6qF1n
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.27% Oil - US Crude: 0.02% Gold: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/D51UyEYdnC
  • French Health Minister: Cannot rule out another lockdown should the situation deteriorate further - BBG
  • #Bitcoin sharply lower today, now down almost 9% $BTC $USD https://t.co/gu4Ca47UaM
AUD/USD Bounces at Support

AUD/USD Bounces at Support

Walker England, Forex Trading Instructor

Talking Points

  • AUD/USD Finds Support at a 61.8% Fibonacci Retracement
  • Bearish Breakouts Open Up a Potential Decline towards .7108
  • Sentiment Remains Extreme, with SSI Reading +2.03

The AUD/USD continues to test price support this morning, as May’s downtrend is poised to continue. Current price support can be seen below comprised of a 61.8% Fibonacci retracement. This Fib line is found at .72121 and has been identified by measuring the distance between the standing 2016 low at .6827 and the April high found at .7835. Currently price action is trading under this Fib level, which opens the AUD/USD to test other values of support. This includes the psychological .7200 value, and the current May low found at .7176.

AUD/USD Daily Chart

AUD/USD Bounces at Support

(Created using Marketscope 2.0 Charts)

In the event of a breakdown of support, AUD/USD traders may begin targeting the next values of support. This includes the March 2016 low at .7108, as well as .7042, which is found at the 78.6% Fibonacci retracement level. In the event that price remains supported, traders may begin to look for a reversal in the pair. In this scenario, traders may look for prices to rally and potentially challenge the current 2016 high.

AUD/USD Bounces at Support

See real time shifts in market sentiment. Find out more at the DailyFX’s sentiment page.

Sentiment for the AUD/USD reads at an extreme SSI (speculative sentiment index) value of +2.03. With the majority of open interest long, it suggests that there may be a further decline in price for the pair. If prices do find support at current levels, traders should monitor SSI. A reversal in price towards higher highs would potentially shift SSI towards more neutral values, or shift the index negative.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES