As anticipated, the AUDUSD found a bid last week in the 0.7500 area. This is a level that’s been a key factor since March of last year.
We had previously discussed the pair quite a bit between late February and the April 4th RBA rate decision. However, after a couple of profitable short trades, I decided to leave the AUDUSD alone last week given the likelihood of a rebound.
But with the pair fast approaching the 0.7608 key level, it seems appropriate to refocus our attention on the Australian dollar.
For the week ahead, I’ll be watching for a sell signal on a retest of 0.7608 as new resistance. This level has acted as a pivot since January 24th, and if past price action is any indication, we should see offers begin to emerge if tested over the coming sessions.
If buyers should close the pair above 0.7608, we could see prices extend toward former trend line support near 0.7700. This area is joined by trend line resistance from the 2016 high.
Key support comes in at 0.7495 with a close below that exposing the 0.7330 handle. A more appropriate target, however, might be the 0.7380 region which is the location of two prominent highs (among other things) between October and December of 2015.
Keep in mind that with the first round of the French elections coming up on April 23rd, volatility is all but guaranteed to increase. As such, I’ll be on the sideline for the remainder of this week and will also use relatively small positions to scale in should a favorable setup materialize.
Have a great week !
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar
We had previously discussed the pair quite a bit between late February and the April 4th RBA rate decision. However, after a couple of profitable short trades, I decided to leave the AUDUSD alone last week given the likelihood of a rebound.
But with the pair fast approaching the 0.7608 key level, it seems appropriate to refocus our attention on the Australian dollar.
For the week ahead, I’ll be watching for a sell signal on a retest of 0.7608 as new resistance. This level has acted as a pivot since January 24th, and if past price action is any indication, we should see offers begin to emerge if tested over the coming sessions.
If buyers should close the pair above 0.7608, we could see prices extend toward former trend line support near 0.7700. This area is joined by trend line resistance from the 2016 high.
Key support comes in at 0.7495 with a close below that exposing the 0.7330 handle. A more appropriate target, however, might be the 0.7380 region which is the location of two prominent highs (among other things) between October and December of 2015.
Keep in mind that with the first round of the French elections coming up on April 23rd, volatility is all but guaranteed to increase. As such, I’ll be on the sideline for the remainder of this week and will also use relatively small positions to scale in should a favorable setup materialize.
Have a great week !
Check the upside technical analysis.
Performed by analytical expert: Urban Stamcar