AUD/USD outlook: Initial reversal signal is developing on daily chart

Slobodan Drvenica Windsor Brokers

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

1. R3 0.6624
2. R2 0.66
3. R1 0.656
PP 0.6535
1. S1 0.6495
2. S2 0.647
3. S3 0.643

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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