AUD/USD Remains in Downtrend and AUD/NZD in Uptrend

Currencies / Austrailia Sep 11, 2018 - 02:04 PM GMT

The daily chart of AUD/USD suggests that the pair is in a significant downtrend below 0.7200.

Key Points

The Aussie dollar started a major downtrend from the 0.8000 barrier against the US Dollar.
The AUD/USD pair recently broke a crucial declining channel with support at 0.7140 on the daily chart.

AUD/USD Technical Analysis

The Aussie dollar formed a major top earlier this year above the 0.8100 level against the US dollar. The AUD/USD tumbled during the past few months and traded below the 0.7500 and 0.7400 support levels.

Looking at the daily chart of AUD/USD, there are many bearish signals visible below the 0.7400 level. The pair followed the 50-day simple moving average and a crucial declining channel on the same chart.

Recently, sellers gained momentum and pushed the pair below the 0.7200 support and the same channel support at 0.7140. It opened the doors for more declines and the pair traded as low as 0.7092.

At the moment, the pair is correcting higher above 0.7100 with an immediate resistance near the broken channel at 0.7140. Above this, the next resistance is near the 23.6% Fib retracement level of the last major slide from the 0.7381 high to 0.7092 low.

However, the most important resistance is around the pivot level at 0.7200, which is also the 38.2% Fib retracement level of the last major slide from the 0.7381 high to 0.7092 low. Finally, the channel resistance near the .07350 and the 50-day SMA are likely to act as hurdles.

Overall, the AUD/USD pair remains in a major downtrend and any recoveries towards 0.7200, 0.7300 and 0.7350 can be considered as a selling opportunity in the medium term since only a close above 0.7400 could push the pair back in a positive zone.

The market outlook is provided by FXOpen broker.

FXOpen - true ECN/STP Forex and cryptocurrency broker.

© 2018 Copyright FXOpen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.