AUD/USD Price Analysis: Correcting within August’s uptrend
|- AUD/USD is correcting within its short-term uptrend.
- The pair broke below a key trendline but has recovered over recent periods.
AUD/USD corrects back after becoming overbought.
The pair pulls back below the trendline for its short-term uptrend during August – a bearish sign – however, it has also tracked higher over recent periods after posting a swing low at 0.6697 on August 22.
AUD/USD 4-hour Chart
AUD/USD is still probably in a short-term uptrend which given “the trend is your friend” favors more upside. The pair might continue up to 0.6799, the July 11 high. A break back above the August high of 0.6761 would help confirm further upside.
A break below the 0.6697 (swing low and low of August 22), however, would indicate the correction had still further to fall, perhaps to a downside target at either the 50-period Simple Moving Average (SMA) at 0.6683 or the 200 SMA at 0.6636.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.