fxs_header_sponsor_anchor

News

AUD/USD technical analysis: Descending channel on 1-hourly chart points to further intraday weakness

  • The AUD/USD pair failed to capitalize its goodish recovery move witnessed on the first day of the week and traded with a negative bias for the second consecutive session on Wednesday.
  • The downtick over the past two trading session has been along a short-term descending trend-channel formation on the 1-hourly charts, supporting prospects for a further intraday weakness.

The fact that the pair has repeatedly failed to build on its momentum beyond 200-hour SMA clearly suggests that the near-term selling bias might still be far from being over and further reinforce the bearish outlook.
 
Moreover, technical indicators on hourly/daily charts maintained their bearish bias, turning the near-term set-up in favour of bearish traders and a possible drop to sub-0.6700 level amid persistent US-China trade uncertainties.
 
However, a sustained breakthrough the trend-channel resistance – currently near the 0.6760 region – leading to a subsequent strength beyond 200-hour SMA might negate the bearish set-up and prompt some near-term short-covering move.
 
The pair might then aim towards reclaiming the 0.6800 round figure mark, above which the momentum seems more likely to accelerate further towards an intermediate resistance near mid-0.6800s en-route the 0.6900 handle.

AUD/USD 1-hourly chart

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.