Visit our website – Ikofx
The Aussie dollar struggled a lot against the US dollar and traded lower. There is a major resistance around the 0.7840 area where the Aussie dollar sellers defended the upside time and again. However, there is also a critical support on the downside, which if held, then the AUDUSD pair might gain strength one more time. There are several important releases lined up during the NY session today, including a speech from the fed chairwoman Yellen. Moreover, the US Consumer Confidence will be released by the Conference Board, which is expected to register a reading of 99.6. Let us see how the outcome would be.
There is a monster bullish trend line formed on the hourly chart of the AUDUSD pair, which is currently protecting downside in the near term. However, there is a bearish sign to note as well, as the pair is now trading below the 100 hour moving average. Still, there is a major point that the pair is finding buyers around the 61.8% fib retracement level of the last leg from the 0.7755 low to the 0.7847 high, which is sitting around the stated trend line. Moreover, the 200 hour MA is sitting just below the highlighted trend line, which means bulls are here to stay, and might take the pair higher in the short term.
On the upside, initial hurdle is around the 100 hour MA, and if buyers break it, then a move towards the 0.7820 level is very likely.
Overall, one might consider buying dips in the AUDUSD pair as long as it is trading above the highlighted trend line.