Forex Technical Update

Previous: AUD/USD Trying to Maintain Bullish Breakout Momentum (4/16)

AUD/USD

AUD/USD

 

The 1H AUD/USD chart shows a market trying to form a double bottom with the lows near 1.03 holding twice as support. Now the market needs to clear 1.0375. It should be noted that the double bottom is forming after a 61.8% retracement of the 1.0224-1.0450 swing that broke above a declining trendline seen in higher time-frames.

Note also that the market is staying above the 200-hour SMA, and a break to the upside will show more or less a flat market taking a bullish disposition. A break above 1.04 should be a clear breakout, and should be confirmed with the RSI pushing above 60, preferably above 70 as well. The 1.0450 high is the immediate challenge, up to the 1.0465 (38.2% retracement of 1.0855-1.0224)

AUD/USD

Above 1.0465, we open up 1.0540 (50% retracement and resistance pivot), as well as 1.06 area (near 61.8% retracement and support for a previous double top pattern). It should be noted that the bullish momentum established at the upside break of a declining trendline is still maintained as the 4H RSI reading stays above 40. Pushing above 60 will reflect a persistent bullish momentum developing and help confirm the bullish outlook toward 1.06.

Join the Market Intelligence Briefings to get fundamental analysis, technical setups, trade plan and management strategies for the AUD/USD, and other currency pairs.

Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

 

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.