Abstract:AUD/USD Technical Analysis: Signs of a Top are Showing, Set to Move Soon
AUD/USD is trading below the area surrounding 8000, a level that has been in play since at least the late 90s. And even if you dont want to give it respect that far back, it has clearly been influential since 2015, when it acted as resistance following a failure to hold, then once again in 2017 and 2018. The high for this year is at 8007 to be exact.
The developments around this long-term threshold are of interest in the short to intermediate-term. A topping head-and-shoulders pattern is in the works, with the possibility that yesterdays rejection just above 7800 (an impactful intermediate-term level) acting as the right shoulder. A break below the neckline is needed to confirm the pattern, a lower-low below 7531 should do the trick.
This could lead to a sizable decline as long-term resistance proves to be a significant ceiling. The height of the pattern implies a measured move of about 500 pips from the neckline, or a drop to around 7000. The 200-day and 7432 would be the first levels to watch along the way.
Should we see AUD/USD continue to hold sideways and fail to trigger the head-and-shoulders pattern, a clearance above 7849 is needed to turn things more positive. We have seen strong price reactions around the 7800/50 area and so a breakout above will be a meaningful event. Ultimately, though, for that trend to pick up steam a weekly or monthly close solidly north of 8000 (8150+) will be needed to leave behind long-term resistance.
For now, in a bit of wait-and-see mode, but given the extended sideways move we are seeing it appears likely to be some activity on the horizon.
AUD/USD WEEKLY CHART (8000-AREA A BIG LONG-TERM THRESHOLD)
AUD/USD DAILY CHART (H&S POTENTIAL, 7800/50 SPOT BIG)
AUD/USD Charts by TradingView
==========
WikiFX, a global leading broker inquiry platform!
Use WikiFX to get free trading strategies, scam alerts, and experts experience!
╔════════════════╗
Android : cutt.ly/Bkn0jKJ
iOS : cutt.ly/ekn0yOC
╚════════════════╝
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Easy Trading Online Broker Proud to be a trusted Forex trading platform. Fulfilling all the mentioned criteria, we provide: A trading platform that is easy to use and understand. Advanced market analysis tools To help you keep track of market changes and make effective trading decisions. Competitive trading fees It will help you save on your expenses. Professional customer support team Always available to advise when in doubt 24/7.
Easy Trading Online, a leading global CFDs broker regulated by ASIC, won the Best Online Trading Services Award at the BrokersView 2024 Award for Brokers with Outstanding Assessment·Middle East in Dubai. The award recognizes their excellence in trading services, leveraging technology and ensuring liquidity.
The Traders Fair Thailand 2024 was successfully held at Bangkok Shangri-La Hotel on February 3rd. As an exhibitor and sponsor, Easy Trading online attended the Expo with professional service team and extraodinary online trading experience on FX & CFDs.
Easy Trading Online, global CFDs & FX broker, is excited to announce its platinum sponsorship of the "Demo Trading World Cup Season 2." This sponsorship not only reinforces Easy Trading Online's commitment to the forex trading community but also highlights its status as nominated as one of the “the hottest brokers” and “the most popular brokers”in the popularity polls.