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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
AUD/USD Technical Analysis: Signs of Looming Downturn Remain

AUD/USD Technical Analysis: Signs of Looming Downturn Remain

Ilya Spivak,

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar clings to trend support but bearish cues continue to warn of topping
  • Short position needs confirmation on a daily closing basis before being actionable

The Australian Dollar has managed to cling onto rising trend line support guiding the move higher since mid-December but signs of topping remain intact. The currency’s struggle to hold above the 2017 swing high coupled with negative RSI divergence – a sign of ebbing upside momentum – hint a drop may be ahead.

From here, a daily close below trend line support at 0.8028 opens the door for a test of the 23.6% Fibonacci retracement at 0.7986. Alternatively, a move back above 0.8066, an inflection point marked by the July 27 high, paves the way for another challenge of the September 8 top at 0.8125.

Clear-cut confirmation of a top remains elusive absent a clear breach of trend line support, warning against entering short prematurely. If support does hold, a viable bullish signal will be needed to justify taking up the long side. In the meantime, opting for the sidelines seems most prudent.

Find out here what the #1 mistake that traders make is and how you can fix it!

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