AUDUSD sits on a short term resistance edge

Although it is trading at new high going back to March 2018

The AUDUSD is making a new cycle high going back to March 2018 after breaking above the January high at 0.78194 today. The new high for the year comes in at 0.78662 so far. 

Although it is trading at new high going back to March 2018

Looking at the hourly chart the a break higher today has taken the price above a topside trend line (connecting highs from February 10 and February 11. That trend line comes in at 0.7859 currently. The price has traded above it to the highs but is trying to stay below the line in the current hourly bar.   The buyers and sellers are battling it out as the price trades near the resistance edge (or ledge).  

Drilling down to the 5 minutes chart below, the trend move to the upside has not had much in the way of corrective moves (and the trend line is steep too).  However, since peaking at 0.78662, the price action has started to move more sideways.  

Having said that, there is still a ways away from the rising 100 bar moving average at 0.7834 (but it is moving higher).   

In the short term, keep an eye on the 0.78526 level for intraday clues. That level was home to some swing lows over the last few hours. The price did move below briefly, but has started to reestablish support around the level. A move below – with momentum – could lead to more downside probing. Stay above, and the buyers are not giving up. They are still winning and the trend is still alive.  

AUDUSD on the 5 minutes chart
PS.. Looking at the weekly chart for the pair, the price action is nothing but bullish with the pair extending above a swing area between 0.7807 and 0.7834 (see red numbered circles). Even on a correction getting below that area would be needed to tilt the bias from the longer perspective more to the downside.
AUDUSD on the weekly chart

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Categorized as Forex

By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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