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
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
AUD/USD Technical Analysis: Aussie Dollar Downtrend Resuming?

AUD/USD Technical Analysis: Aussie Dollar Downtrend Resuming?

Ilya Spivak, Head Strategist, APAC

AUD/USD TECHNICAL OUTLOOK: NEUTRAL

  • Bearish Evening Star candle setup at resistance precedes AUD reversal
  • Prices poised to break monthly uptrend, attempt downtrend resumption
  • Follow-through may re-engage structural decline following retracement

The Australian Dollar recoiled downward after putting in a bearish Evening Star candlestick pattern at resistance marked by the top of a rising channel broadly containing price action since early October 2019. The currency has now traded through support guiding December’s rally and looks poised to secure a break back below former resistance in the 0.6930-39 zone.

Confirming the breach on a daily closing basis would set the stage for a descent into a thicket of back-to-back support levels along the way to the channel floor, now just a hair above the 0.68 figure. Securing a foothold below that would make a compelling argument for downside follow-through as the long-term downward trend is re-engaged in earnest.

Australian Dollar vs US Dollar price chart - daily

Daily AUD/USD chart created with TradingView

Indeed, turning to the monthly chart suggests there is ample scope for weakness on the horizon. Although December delivered the largest rise in 2.5 years, the move conspicuously fell just short of breaking back above the upper layer of support-turned-resistance at 0.7018. This hints that recent gains have been corrective before resumption of structural Aussie depreciation puts the 0.6009-0.6352 zone into the spotlight.

AUD/USD Technical Analysis: Aussie Dollar Downtrend Resuming?

Monthly AUD/USD chart created with TradingView

AUD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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.

DISCLOSURES