Forex: AUD/USD faces 1.0440/45 confluence level
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AUD/USD
FXstreet.com (Barcelona) - The bearish momentum in the AUDUSD is currently faced with the Jan 24 lows 1.0440 + the 20-EMA on the H4 chart, a level of confluence which has seen a mix of action between sellers stepping in and s/t traders taking profit.
While from an hourly perspective the Australian Dollar has managed to break the 20-EMA to the upside, causing a chain magnet effect of the 1.0440/45 being targeted and met, the next challenge for the pair is to regain the upside of the 4h 20-EMA at 1.0440/45, with a subsequent consolidation above it implying that buyers are growing in number.
However, a failure circa 1.0440/45 forebodes that, despite the trend has transitioned from less to more volatile - normally a sign of possible reversals in trend -, sellers should still be dominant for further attempts towards round number 1.04 ahead of 1.0382.
It is worth noting that the triple top at 1.0425, formed on Jan 25/28, has been broken during today's corrective upleg, suggesting that regaining back the downside of this particular level will be critical for the prospects of a downtrend resumption.
While from an hourly perspective the Australian Dollar has managed to break the 20-EMA to the upside, causing a chain magnet effect of the 1.0440/45 being targeted and met, the next challenge for the pair is to regain the upside of the 4h 20-EMA at 1.0440/45, with a subsequent consolidation above it implying that buyers are growing in number.
However, a failure circa 1.0440/45 forebodes that, despite the trend has transitioned from less to more volatile - normally a sign of possible reversals in trend -, sellers should still be dominant for further attempts towards round number 1.04 ahead of 1.0382.
It is worth noting that the triple top at 1.0425, formed on Jan 25/28, has been broken during today's corrective upleg, suggesting that regaining back the downside of this particular level will be critical for the prospects of a downtrend resumption.
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