(MENAFN- DailyFX) breaks above February slope resistance focus is on a larger recovery while above7160 Check out our 3Q projections in our Join Michael for Live Weekly Strategy Webinars on The is up nearly 4% off the yearly lows with the rally breaking through yearly down-trend resistance this week. Here are the updated targets and invalidation levels that matter on the AUD/USD charts this week. Review this week's for an in-depth breakdown of this setup and more.
New to Forex Trading? Get started with this
AUD/USD Daily Price Chart Technical Outlook: In my latest we highlighted a multi-month resistance slope in price with our ‘bottom line' favoring the long-side while above the low-day close at 7087. A breach above confluence resistance at 7239 yesterday has clears the way for a larger advance with our focus higher in Aussie while above the trendline confluence around ~7160 (yellow).
Initial daily resistance stands at 7327/36 with a breach / close above the upper 50-line targeting a more significant zone at 7446/56 where the 38.2% retracement of the yearly range and the May low-day close converge on resistance (note the 200-day moving average just higher).
AUD/USD 240min Price Chart Notes: A closer look at price action shows AUD/USD trading within the confines of a slope series originating off the late-October lows (red). Initial support rests at back at 7239 with our near-term focus higher while above the lower parallel / weekly open support at 7191.A break below 7160 would beneeded to suggest a more significant high is in place. Look for a breach above 7336 to fuel the next leg targeting 7374 and key resistance at 7446/56.
Even the most seasoned traders need a reminder every now and then-
Bottom line: AUD/USD has broken above multi-month slope resistance and although the broader outlook remains constructive, the advance may be vulnerable near-term while below 7327/36. From a trading standpoint, we'll continue to favor fading weakness while above weekly open support targeting a breach of the October highs. A break lower would invalidate the reversal play with such a scenario exposing a drop back towards the yearly low-day close at 7086 (note monthly open comes in at 7072).
For a complete breakdown of Michael's trading strategy, review his
AUD/USD Trader Sentiment A summary of shows traders are net-long AUD/USD - the ratio stands at +1.03 (50.6% of traders are long) neutral reading Long positions are 2.0% lower than yesterday and 18.2% lower from last week Short positions are 10.8% higher than yesterday and 45.8% higher from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD / USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week and the recent changes in sentiment warn that the current AUD/USD price trend may soon reverse higher despite the fact traders remain net-long. See how shifts in AUD/USD retail positioning are impacting trend-
---
Relevant AUD/USD Data Releases - latest economic developments and upcoming event risk. Learn more about how we !
Active Trade Setups
- Written by , Currency Strategist with DailyFX
Follow Michael on Twitter or contact him at
MENAFN0811201800760000ID1097676584
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.