Australian Dollar Analysis: AUD/USD, AUD/JPY, AUD/CAD, EUR/AUD Technical Setups
Australian Dollar, AUD/USD, AUD/JPY, AUD/CAD, EUR/AUD – Weekly Technical Outlook
- Australian Dollar remains in broad consolidation, signals mixed
- AUD/USD and AUD/JPY look neutral, eyeing key support levels
- AUD/CAD may aim lower, EUR/AUD facing triangle breakout
AUD/USD - Neutral
The Australian Dollar continues to consolidate against the US Dollar, but the near-term bias could remain tilted to the upside. In April, AUD/USD broke above a Descending Triangle chart pattern, offering a bullish technical bias. While prices remain higher, upside momentum has been fading. Immediate support seems to be the 100-day Simple Moving Average. That could keep the bias tilted higher, bringing the 0.7849 – 0.7891 resistance zone into focus. Otherwise, the floor of the triangle stands between 0.7532 – 0.7583.
AUD/JPY - Neutral
AUD/JPY seems to be consolidating within an Ascending Triangle chart pattern. Prices were unable to pierce the 85.81 – 84.95 resistance zone, resulting in a turn lower towards the floor of the triangle. Further losses may be in store from here, but rising support and the 100-day SMA could keep the bias titled to the upside. If not, clearing them would expose the 38.2% Fibonacci extension at 82.17. Breaking above the triangle would place the focus on the 100% level at 86.99.
AUD/CAD – Slightly Bearish
AUD/CAD continues to trade lower within a bullish Falling Wedge chart pattern. Prices are fast approaching the key 0.9248 – 9294 support zone, established last year. Positive RSI divergence does show that downside momentum is fading, which can at times precede a turn higher. A bounce within the wedge would likely place the focus on the 20-day SMA, which may act as resistance and keep the focus tilted lower. Taking out key support would expose the 123.6% Fibonacci extension at 0.9138.
EUR/AUD – Slightly Bullish
EUR/AUD broke above an Ascending Triangle chart pattern this past week. But, the confirmation has been somewhat lackluster. Friday’s candle was a Doji, a sign of indecision. As such, a further upside close could open the door to reversing what was the dominant downtrend from October through February before the pair bottomed. Key resistance seems to be the 1.5869 – 1.5947 zone, with the 200-day SMA hovering nearby. A turn back lower into the triangle may place the focus on rising support from February.
--- Written by Daniel Dubrovsky, Strategist 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.