Audusd Technical Outlook

Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.

 

Audusd is currently trading just above a significant support level on the weekly timeframe      ( refer to chart below). This support at .9849 results from a previous resistance point which was breached after repeated attempts to do so. The impressive bullish bar which ripped through, and closed beyond parity was however, completely engulfed by the following bearish one. This gives the impression that the pair might finally be ready to set up a retracement. The level that I am inclined to consider for eventual short targets is .9350/.9400, as labeled on the chart below.

The daily chart has what appears to be a head and left shoulder formation. The main up trendline was breached. The consequential bounce which came at the weekly support at .9700s could provide the momentum to push it towards the .9954 fibonacci retracement level, which would be just about equal to the left shoulder formation. This does not mean that this level will necessarily get tested; it is just worth watching for a bearish confirmation setup, if it were to stretch that far. Current resistance (.9880s) have been holding over the last 6 hours, so I will also be paying close attention to this area for a short setup.

Thanks a lot for reading, and I’d also love to hear your points of view. Happy trading! 🙂

 

Gbpjpy retesting weekly resistance: http://winnersedgetrading.com/gbpjpy-technical-analysis-trading-channels/

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  • You’re welcome, Ambong. Thanks for reading, and all the best! 🙂

  • Hi Wolfie. I just now saw your comment. Looks like you were right about the pair gapping up 🙂 Thanks for your comment, and a great trading week to you! 🙂

  • You’re welcome, Krisokenta. Thanks for reading and commenting. I do hope that we can indeed meet at the success table! All the best 🙂

  • Thanks, Ferly. I would also love to see it break down 🙂

  • Hi Miroforex. I’d like to see at least a 4-hr reversal pattern pattern at or near the daily trendline referred to on the chart. The .9915 resistance has been holding but.9812 support is also strong. A breach of this support would be a nice indication for me also. Thanks for reading.

  • Thanks for the comment, Ront. I agree. The timing needs to be just right.

  • Wolfie

    Sofia,
    The market will gap up at the open, form the right shoulder then head south. EUR, NZD will do the same. They are joined at the hip at the present.

  • Krisokenta

    Hi, thank you for the good analysis of the AUD/USD. I have been positioning to short it since yesterday. The weekly chart displays it to be bearish. Hopefully we meet at the success table.
    KRISTOFA

  • Ferly agoeng

    You Are Rigt
    Realy Down… I’m In

  • Ambong damian

    Thank you for the tip. I almost lost my patience again and about to make a long position if this third candle will not be able to prick the pivot line. Indeed, I am convinced that we have to go short once the price goes up to resistance level. Again, thank you for this tip. It’s very useful.

  • miroforex

    Hi Sofia, what confirmatiom r u waiting for to initiate your short trade

  • Ront

    agreed. Key is how much of the retracement going to be to form the right shoulder before it goes down hard. Longer term still looks bearish