Technical Analyst, Saxo Bank Group
Summary: Can volatile AUD pairs find support or direction?
AUDUSD broke short term rising seems trend line and was hit with massive sell off. Now the pair seems to have found support at around 0.71. A correction up to around 0.72600 possibly touching 0.73.Down side sentiment remains, however, and selling pressure could resume before. Keep an eye on 0.7220 minor resistance.
Upper Bollinger band is starting to narrowing indicating AURUSD is in its finally stage of the (down)trend. However, if today’s low at 0.7075 is taken out a test of 0.70 is likely.
Weekly. It is a sign of weakness that AUDUSD couldn’t keep upside momentum after breaking medium term falling trend line. Now trading back below the trend line and hovering around 200 weekly Simple Moving Average the medium term up trend is cancelled.
Trading below declining 55 weekly SMA indicating underlying sentiment is bearish. A re-test of strong key support at 0.70 within a couple of weeks is not unlikely.
AUDJPY bouncing back above support around 90.80 after what seems to have been a false bear break. RSI rejected at 40 meaning despite divergence we could see higher levels in the pair. Expect some resistance at 0.618 retracement level at 93.72.
To reverse the likely new highs scenario a break below 90.40 is needed.
AUDGBP trying to break bullish above short term falling trend line in what is likely to be a correction. Uptrend to be resumed if the pair is breaking above 0.5720.
Below 0.5590 expect sell off to around 0.55
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)