Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

Is the Correction in AUD/USD Over?

AUD / USD traded higher on Friday, after reaching support near the 0.7253 area overnight. The pair has been in a slide mode since last Tuesday, but overall remains above the uptrend line drawn from the June 15th low. Thus, we would view the latest setback as a corrective phase, and we would view the short-term outlook as still positive.

Having said that, confirmation on the current rebound and expanding above the 0.7300 barrier would allow us to assert this assumption, which is marked as resistance from last Wednesday's low. Such a move could prompt bulls to aim for Monday's low, around 0.7340, where another breakout could set the stage for extensions towards the 0.7415 area, marked by last Tuesday's high.

We see that the RSI, although below the 50, has rebounded from near its 30 line, while the MACD, although below its zero and trigger lines, is also showing signs of a dip. Both indicators detect a slowdown in the rate of decline and suggest that the rate may soon start to gain momentum. All of this is consistent with the concept of subsequent recovery.

Bearish alternative scenario, we would need to see a steep drop below 0.7205, marked by the August 24 indoor swing high which could allow a dip to the 0.7140 area, which provided strong support on August 20 and 21. . If the AUD / USD stays below the bullish trendline, we will have the possibility for another bearish step to reoccur which could result in the 0.7140 hurdle being breached. The Bears could push the pair to the August 12 low, 0.7110, or the August 3 low, to the 0.7075 level.

AUD/USD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.25% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS