AUD/USD rally may end at the support level
2023.01.27 09:25
AUD/USD rally may end at the support level
Since falling to a 30-month low of 0.6169 in mid-October, AUD/USD has been trading bullish almost every week and is poised for its third monthly gain.
While the 61.8% Fibonacci retracement of the 0.7660-0.6169 downtrend may be another warning zone at 0.7185, as the RSI and Stochastics indicate overbought conditions, the pair is currently flirting with August’s high of 0.7136. The price continues to fluctuate around the upper Bollinger band, increasing the likelihood of a downside correction.
However, the progressing golden cross between the 50- and 200-day simple moving averages (SMAs) suggests that any downturn could be temporary and part of the bullish trend, and the positive trend in the short term appears to be healthy.
Assuming the pair slides beneath 0.7065, it might look for help close to the 0.7000 mental imprint prior to going up against the 0.6940-0.6860 zone, which epitomizes the half Fibonacci level, the 20-day SMA, and two key obliging trendlines. The 0.6740-0.6700 range is next on the radar if prices fall below and below the 0.6800 level. This would lower the short-term outlook to neutral. The 0.6600 level could be reached by a steeper fall.
The bulls may then move toward June’s bar of 0.7282 if they can break out of the 0.7136-0.7185 resistance zone. If there is another success there, the 0.7375 resistance level could be reached, and higher, the uptrend could reach 0.7450.
