AUD/USD outlook: Initial reversal signal is developing on daily chart
|AUD/USD
AUDUSD regained strength and advanced on Thursday, offsetting negative impact from Wednesday’s strong upside rejection under the base of rising daily cloud.
Several signals point to basing attempts and formation of reversal pattern on daily chart, such as Monday’s Hammer candle with long tail and a bear-trap.
Hammer is also forming on weekly chart, while long-tailed monthly Doji adds to signals that bears are losing traction.
Daily studies are mixed (momentum indicator is in negative territory and MA’s in bearish setup), but thinning and rising daily cloud attracts.
Break of 0.6573 (50% retracement of 0.6796/0.6348/daily Kijun-sen) is needed to boost positive signal for retest of cloud base (0.6599) and attack at Fibo 61.8% (0.66626).
Holding above broken 10DMA (0.6526) is minimum requirement to keep near-term bulls in play.
Res: 0.6573; 0.6592; 0.6601; 0.6626.
Sup: 0.6526; 0.6507; 0.6472; 0.6455.
Interested in AUD/USD technicals? Check out the key levels
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