AUDUSD – Hourly

AUDUSD –

Despite an impressive bounce-back above pre-pandemic levels, it appears the Australian Dollar rally could be coming to an end. With momentum waning and no apparent price catalysts in sight, the AUDUSD pair seems top-heavy and primed for downside targets.

Let’s take a look at the hourly chart. Since last Thursday, we can see the Aussie activity has dipped significantly, with a mostly consolidative range developing among the shorter time frames.

This price action may be the start of a distribution period and the ‘last hoorah’ for AUDUSD before the established price structure begins to breakdown as we witness a stronger US Dollar. For the time being, the 0.7240 level is acting as good support, but the sharp downturn in the momentum indicator shown is another bearish factor to consider. It suggests the pressure is building for a sell-off.

If AUDUSD does indeed decline, then the weekly pivots of 0.7178 and 0.7061 stand out as potential downside targets in the short-term. The later pivot point also provided adequate support at the start of November.

To the upside, support and resistance look much choppier, and if the bulls manage to conquer the current resistance level of 0.7413, it might be a rocky climb up towards the 0.80 regions.

Finally, I thought I’d also include the daily chart below as it shows the Aussie’s momentum struggles much clearer. It will be interesting to see how the pair finds it’s next directional cue, but whichever way it moves, the length of this consolidative period should determine it’s overall strength.

 

Note: Click on charts to enlarge.

 

By Adam Taylor CTEe

.@adamt_trading

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

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