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.

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
More View more
AUD/USD Eyes Resistance, AUD/NZD Resumes Fall, GBP/AUD May Bounce

AUD/USD Eyes Resistance, AUD/NZD Resumes Fall, GBP/AUD May Bounce

Daniel Dubrovsky, Strategist

Australian Dollar Technical Forecast

  • AUD/USD sought to recover some losses this past week, can it keep going?
  • AUD/NZD is a step closer to resuming its dominant downtrend from August
  • GBP/AUD may see a near-term bounce on a well-defined rising trend line

Have a question about what’s in store for Australian Dollar next week? Join a Trading Q&A Webinar to ask it live!

Every week, I am conducting a poll on Twitter to determine which two Aussie pairs (in addition to AUD/USD) have the most interest. This time the first choice was AUD/NZD followed by a tie between AUD/JPY and GBP/AUD. To break it, I chose the latter. If you would like to participate in these votes, follow me on Twitter @ddubrovskyFX where I will also be posting timely updates on the Australian Dollar.

AUD/USD Technical Outlook: Neutral

In last week’s forecast, AUD/USD fell through multiple support barriers which resulted in a slightly bearish outlook. That has now been changed to neutral after prices were unable to get much further beyond 0.7081 before turning back higher. This created a new support range between 0.70543 and 0.7081. As the week ended, immediate resistance held at 0.71452 which is the December/May 2016 lows.

Going forward, this area may prove to be tough for AUD/USD to push through. This is because a descending resistance line from January 11 also stands in its immediate path. With that in mind, a push above these barriers may open the door to testing early February highs (0.7272 – 0.73). Meanwhile, a descent through support exposes 0.7021 – 0.6981.

AUD/USD Daily Chart

AUD/USD Chart

Looking for a fundamental perspective on AUD ? Check out the Weekly AUD Fundamental Forecast.

AUD/NZD Technical Outlook:Slightly Bearish

AUD/NZD experienced its worst week since January 21, falling a little over one percent. Fundamentally, this came against the backdrop of a less dovish RBNZ rate decision than expected which I covered live and created a recording of. This has also reinforced the pair’s fundamental trait as a ‘risk-neutral’ currency pair, focusing instead on the difference in monetary policy expectations between the RBA and RBNZ.

Prices fell through a critical area of support between 1.0452 and 1.04347, exposing June/February 2017 lows. While a break through the former is rather notable, additional confirmation should be needed to argue that the pair is resuming the dominant downtrend from August. Clearing 1.0368 – 1.0326 might be that sign. If AUD/NZD turns higher, watch out for a potential new falling resistance line from January 21.

AUD/NZD Daily Chart

AUD/NZD Chart

GBP/AUD Technical Outlook:Slightly Bullish

GBP/AUD finds itself sitting on a well-defined rising trend line from December 2018 after experiencing declines this past week. If it holds as it did in the past, GBP/AUD may be heading for a push higher in the near term. Watch for a close above a falling resistance line from February 8, which would expose a descending range from January 3. With that in mind, it is a slightly bullish call for GBP/AUD.

GBP/AUD Daily Chart

GBP/AUD Chart

* Charts created in TradingView

FX Trading Resources

--- 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.

DISCLOSURES