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The Australian dollar managed to climb higher during the start of the week and then later failed to capitalize on the gains against the US dollar. The AUDUSD pair is testing an important support area as of writing, which might act as a catalyst for the pair in the near term. There was no release in the Asian session today, which kind of helped the US dollar to gain a few bids. It was seen surging higher against almost all major currencies. There are no major high risk events lined up during the London session. So, it would be interesting to see how the AUDUSD pair trades during the coming sessions as more downsides are likely moving ahead.
There is a bullish trend line formed on the hourly chart of the AUDUSD pair, which is acting as a support for the pair as this analysis was written. The most important thing to note from the charts is that the pair is stuck between two key moving averages i.e. 100 and 200 hour MA’s. On the upside, the 200 hour MA is acting as a resistance for the pair and on the downside, 100 hour MA is acting as a support. However, there is a critical point to note, which is the fact that the highlighted trend line is also coinciding with the 100 hour MA. So, there is a monster support formed around the 0.8120 level.
So, if at all the Aussie dollar sellers manage to break the mentioned support area, then a sharp downside is likely moving ahead.
Overall, one might consider selling with a break below the highlighted trend line as long as the pair is below the 200 MA.