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
AUDUSD Looking for a Bounce Before Next Big Move Lower

AUDUSD Looking for a Bounce Before Next Big Move Lower

Christopher Vecchio, CFA, Senior Strategist

1-hour Bars

eliottWaves_aud-usd_body_Picture_1.png, AUDUSD Looking for a Bounce Before Next Big Move Lower

Prepared by Christopher Vecchio, Currency Analyst

The AUDUSD traded to new lows overnight but has since rebounded, while respecting descending channel support as well as the 100% Fibonacci extension at 1.0342 (price did not quite touch in the overnight. With budding bullish RSI divergence on the hourly chart, it appears that a bounce could be nearing. This fits neatly with the wave count from the August 9 top, which is suggesting that price has just completed subwave 1 of wave 3 in the encompassing structure. Near-term resistance comes in at 1.0440/50 (channel support dating back to June, 200-SMA on 4-hour chart), 1.0480, 1.0530/45 (former swing highs), and 1.0600/15 (August high). Should we see a rally up towards 1.0600 again, another failure would market a Double Top and signal a push for a test of 1.0200/05 (100-DMA).

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES