-
AUD/USD holds steady within 0.6500 zone.
-
Technical picture remains gloomy below 0.6630.
AUDUSD has largely ignored the swings in the US dollar this week, staying relatively stable within the 0.6500 area and slightly above its recent three-month low of 0.6439.
There is not much evidence of strong buying appetite at the moment as the RSI is pointing down in the bearish area below 50 and the stochastic oscillator is set for a negative reversal. Moreover, the short-term trend is clearly developing within a bearish channel and below the simple moving averages (SMAs), reflecting downbeat sentiment.
A move above the 20-day SMA and the former support trendline at 0.6555 could find immediate resistance at the upper band of the channel and the 38.2% Fibonacci retracement of the ongoing bearish trend, which also lines up with the flattening 200-day SMA. Even higher, the bulls may attempt to violate the negative trend above the previous high and the 50% Fibonacci of 0.6690.
Should sellers breach the 0.6440 base, the decline could stretch toward the critical support trendline which connects the lows from 2022 to 2024 seen at 0.6380. A close lower could spark an aggressive downfall toward the 0.6270-0.6300 base. If the bears claim that floor too, the focus will turn to the 2022 bottom of 0.6169.
In brief, AUDUSD is not in great shape despite staying resilient above its recent lows. A rebound above 0.6630 could help avoid a bearish continuation, whilst a break below 0.6380 could signal further downside in the long-term picture.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.