Investing.com - Financial Markets Worldwide
👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Is AUDUSD set for a break higher?

ByXM Group
AuthorTrading Point
Published 02/02/2024, 05:58 AM
Updated 05/01/2024, 03:15 AM
AUD/USD
-
  • AUDUSD_Daily_02_02
    • AUDUSD sends some encouraging signals
    • But the bulls need to claim the 0.6600 territory
    • US nonfarm payrolls awaited at 13:30 GMT

     
    AUDUSD bulls came into action instantly after the price dropped to a more-than-two-month low of 0.6507 to test the ascending trendline from the 2020 low. The pair finished the day with a bullish long-tailed hammer candlestick, which is theoretically a positive signal of an upside reversal. Yet, traders will need another big green candlestick to confirm a continuation higher.

    The exponential moving averages (EMAs) have been capping upside movements around the 0.6598 level over the past week. Therefore, a clear break above this wall is probably required for a rally towards the next resistance of 0.6700-0.6720. Even higher, the pair could retest the lower band of the broken bullish channel near the 0.6800 psychological mark.

    Note that the RSI has yet to rise above its 50 neutral mark, while the MACD remains stable near its red signal line, reflecting some uncertainty in the market.

    If the pair gets a rejection near the 0.6600 number, the focus will turn back to the 0.6500-0.6520 constraining zone. A close below this region could trigger a decline towards the 0.6450 area, where the pair paused several times in the second half of 2023. The 0.6400 round level could be the next destination if sellers stay in play.

    All in all, AUDUSD is displaying a bullish tendency, with traders likely awaiting a durable move above the 0.6600 mark to boost the price higher.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.