AUDUSD Price Close to Key Support Levels, Bounce Possible
AUDUSD price and technical analysis:
- The AUDUSD price has fallen back this week but is now close to support from a rising trendline and several moving averages.
- That suggests a rally nearer channel resistance is on the cards.
AUDUSD price well placed to recover
The AUDUSD price is now close to support from the lower bound of a rising channel that has been in place since late October. It is also sitting on the 20-day moving average and is not far above the 50-day and 100-day moving averages, suggesting that any further near-term downside is limited.
AUDUSD Price Chart, Daily Timeframe (August 16 – December 5, 2018)
Chart by IG (You can click on it for a larger image)
As the chart above shows, the trendline joining the higher lows in place since October 26 now checks in at 0.7251, while the 100 dma at 0.7209 and the 50 dma at 0.7192 provide further support. By contrast, there is now little resistance ahead of the December 4 high at 0.7394, the upper bound of the rising channel at 0.7423 and the August 9 high at 0.7454.
This all suggests that a move closer to the top of the channel is a possibility in the next few days even though the 14-day relative strength index has so far failed to confirm the higher highs for the price over the past six weeks.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.