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: Bearish Reversal Attempt Invalidated

AUD/USD Technical Analysis: Bearish Reversal Attempt Invalidated

Ilya Spivak, Head Strategist, APAC

AUD/USD Technical Strategy: FLAT

  • Aussie Dollar roars higher as markets react to Powell comments
  • Counter-trend support break invalidated, range top back in play
  • Opting to wait for confirmation before re-entering short position

Get help building confidence in your AUD/USD strategy with our free trading guide!

The Australian Dollar managed to defend against another attempt at re-establishing the longer-term down trend, rebounding to overturn a break below counter-trend line support. The reversal came courtesy of broad-based US Dollar selling following comments from Fed Chair Jerome Powell, which the markets interpreted to mark a dovish turn in forward guidance.

AUD/USD Chart (Daily)

From here, a daily close above resistance in the 0.7303-38 area opens the door for a challenge of August 21 high at 0.7382, followed by former support in the 0.7452-61 zone. Alternatively, a turn lower that clears support in the 0.7142-70 region opens the door for a retest of recent swing lows in the 0.7021-41 band. That barrier is reinforced by recently broken trend line resistance-turned-support set form late January.

The AUD/USD short position activated at 0.7231 has been stopped out. While bearish long-term positioning remains broadly intact, re-establishing exposure here seems premature. First, the markets seem determined to find reasons to unwind long-USD exposure. Second, an actionable near-term sell signal is conspicuously absent. With that in mind, opting for the sidelines appears to be prudent for now.


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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