AUD/USD Rebounds Above Critical Resistance
- AUD/USD Rebounds Above Previous Resistance
- The 200 MVA is Now Acting as Support at .7547
- Sentiment Figures Remain Negative; IG Client Sentiment Totaling -1.33
The AUD/USD continues to rebound from weekly lows, and is now trading back above its 200 day MVA (simple moving average) at .7547. This rebound should be seen as technically significant as this move suggests that the pair may be preparing to trend higher in the long. It should be noted that the AUD/USD is also trading back abo above its short term 10 day EMA (exponential moving average) at .7551.
With the trend pointed higher, traders should next look for the AUD/USD to potentially challenge the March 29th high at .7675. A move beyond this value exposed the standing 2017 high at .7749. In the event that the AUD/USD again turns lower, traders should first look for the pair to trade back below its 10 day EMA. A move below .7551 would suggest a change in the short term trend, allowing traders to again target new weekly lows under .74373.
AUD/USD, Daily Chart with Averages
Current sentiment totals for the AUD/USD remain negative, with IG Client Sentiment currently reading at -1.33. This value has increased in recent sessions, but has failed so far to reach extremes with only 57% of traders short the currency pair. In the event that the AUD/USD continues to trend higher, traders may look for these sentiment totals to move towards negative extremes of -2.0 or more. Alternatively, if the pair reverse back towards weekly lows, traders may look for IG Client Sentiment to normalize and potentially flip back to a positive reading.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.