Australian Dollar Price Forecast: AUD/USD Tests Critical Support Level- What’s Next?
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Aussie Dollar vs US Dollar Technical Analysis
AUD/USD- Bullish Development
On Friday, Aussie Dollar printed its highest level in four weeks against US Dollar at 0.6368 then AUD/USD retreated after as some bulls seemed to cut back. Yet, the weekly candlestick closed in the green with nearly 6% gain.
This week, the Relative Strength Index (RSI) fell from 61.5 to 55 reflecting a slowing down uptrend momentum.
AUD/USD DAILY PRICE CHART (July 1, 2018 – April 15, 2020) Zoomed Out
AUD/USD DAILY PRICE CHART (Jan 2 – April 15, 2020) Zoomed IN
Looking at the daily chart, we noticed that last week AUD/USD rallied above 0.6000 threshold then climbed towards 0.6409 as indicated in our last update. On Monday, the price closed above the 50-day average for the first time in nearly three months providing a bullish signal. Yesterday, the pair rallied to current trading zone 0.6409 – 0.6684 generating another bullish signal.
That said, any close below the low end of the zone reflects bull’s hesitation. This may lead bulls to exit the market causing AUDUSD to fall towards 0.6009. Further close below that level could send the price even lower towards 0.5796. Although, the weekly support levels underlined on the chart (zoomed in) should be considered.
On the flip side, another close above the low end of the zone may encourage bulls to push AUDUSD towards the high end of the zone. Further close above that level opens the door for more bullishness towards 0.6827. In that scenario, the weekly resistance levels underscored on the chart should be watched closely.
AUD/USD Four-Hour PRICE CHART (Mar 20 – April 15, 2020)
From the four- hour chart, we noticed that on Wednesday AUD/USD ended its sideways move as broke above the March 31 high at 0.6214. The price started uptrend momentum creating higher highs with higher lows. Today, the price has corrected lower after breaking below yesterday’s low at 0.6374.
Any break below 0.6280 would be considered a bearish signal and could send AUDUSD towards 0.6110. Nevertheless, the daily support level marked on the chart should be kept in focus. In turn, any break in the other direction i.e. above 0.6459 could resume bullish price action towards 0.6585. Yet, the weekly resistance level printed on the chart should be monitored.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.