AUD/USD and AUD/JPY May Extend Climbs as AUD/CAD Holds its Ground
Australian Dollar Technical Forecast
- The Australian Dollar appreciated against its major counterparts last week
- AUD/USD & AUD/JPY broke key resistance, opening the door to more gains
- AUD/CAD breakout past converging trend lines lacks a clear-cut bias for now
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This week, the top two requested Aussie crosses to cover in addition to AUD/USD were AUD/CAD and AUD/JPY. AUD/NZD was behind AUD/JPY by just one vote. If you would like to participate in each week’s poll and for the opportunity to break close ties, follow me on twitter @ddubrovskyFX.I will post timely updates on the Aussie Dollar there as well.
AUD/USD Technical Outlook: Bullish
The Australian Dollar made an aggressive push this week against its US counterpart, flying past multiple resistance barriers highlighted in last week’s technical forecast. Notably, AUD/USD closed above 0.72466 which was the outer boundary of horizontal resistance. This has opened the door to testing the highs achieved back in December 2018 between 0.73572 and 0.73935.
Guiding the Aussie Dollar ahead might be a rising support line from early January (upward sloping red line on the chart below). A descent through it would expose a horizontal range of support between 0.71645 and 0.71452 before the January 24th low at 0.7081. With that in mind, these technical signals hint that AUD/USD might be readying to extend its near-term uptrend. The outlook looks bullish.
Looking for a fundamental perspective on AUD? Check out the Weekly AUD Fundamental Forecast.
AUD/USD Daily Chart
AUD/CAD Technical Outlook: Neutral
AUD/CAD was at one point getting ready to reverse its dominant downtrend from late November 2018. I highlighted this warning as a Morning Star forming on the weekly chart. By the end of this past week, declines in AUD/CAD overturned this bullish signal. Moreover, the pair’s breakout from converging trend lines appears to lack a clear direction (see red lines on the chart below).
There, I have highlighted a consolidation range in-between 0.95687 and 0.94464. Since the pair recovered from the flash crash early in January, the pair hasn’t found a meaningful direction. With that in mind, I am closely watching for a push outside near-term support and resistance barriers (0.94314 and 0.95781 respectively). The AUD/CAD technical outlook seems neutral going forward.
AUD/CAD Daily Chart
AUD/JPY Technical Outlook: Bullish
AUD/JPY appears to be finding itself in a similar situation as AUD/USD. Prominent resistance barriers have been breached this past week, opening the door to further gains in the coming days. Near-term resistance appears to be a horizontal range in-between 80.62 and 81.14. Should the pair climb above that, December 2018 highs would be exposed.
Immediate support is a combination of a range between 79.05 to 78.69 and the rising trend line going back to 2008. If AUD/JPY finds itself turning lower instead, a descent through 77.49 would open the door to testing the January 4th low at 75.24. With that in mind, the push higher in AUD/JPY leaves the technical forecast as bullish.
AUD/JPY Daily Chart
** Charts created in TradingView
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--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.