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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
AUD/USD Technical Analysis: Upside Correction Hinted Ahead

AUD/USD Technical Analysis: Upside Correction Hinted Ahead

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Bullish Engulfing Candlestick Pattern Hints Australian Dollar May Bounce vs. US Counterpart
  • Waiting for New Opportunity to Trigger Short Trade, RBA Rate Decision is Critical Event Risk

The Australian Dollar put in a Bullish Engulfing candlestick pattern, hinting a bounce against its US counterpart may be brewing ahead. Follow-through probability is clouded in uncertainty however as the RBA monetary policy announcement looms ahead, with the outcome threatening to meaningfully alter technical positioning.

A daily close above support-turned-resistance at 0.7199 opens the way for a move higher to challenge the 0.7381-87 area marked by the October 12 and the 38.2% Fibonacci retracement. Alternatively, a push through rising trend line support set from early September – now at 0.7077 – sees the next downside threshold at 0.6902, the 38.2% Fib expansion.

On balance, the dominant trend continues to favor a bearish bias. With that in mind, any on-coming gains are likely to be corrective in the context of a larger decline. We will wait on the sidelines for now, looking for the bounce to play out or be invalidated with a break of trend line support to position for selling opportunities.

Losing Money Trading Forex? This Might Be Why.

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