Skip to Content
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. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
AUD/USD Rebounds Above Critical Resistance

AUD/USD Rebounds Above Critical Resistance

Walker England, Forex Trading Instructor

Share:

Talking Points:

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

(Created Using IG Charts)

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.

Want to learn more about trading with market sentiment? Get our Free guide here.

--- Written by Walker, Analyst for DailyFX.com

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