AUD/USD Approaching Support: Dip Buyers Potentially Drawn to Tec
Updated
Long-Term Technicals Favour Buyers
The AUD/USD technical space is chalking up an interesting picture.
From the longer-term monthly scale, you will note that price recently recoiled from the lower edge of a symmetrical triangle (or coil) drawn from the low of $0.5506 and engulfed a neighbouring descending resistance taken from the high of $0.7661. Technically, this places bulls in the driving seat for now and opens the door to not only local tops around $0.6895 but also the upper boundary of the coil pattern extended from the high of $0.8007.
While price action suggests bulls could continue to navigate higher prices, the monthly chart’s Relative Strength Index (RSI) is testing the lower side of its 50.00 centreline. However, knowing the indicator failed to push through a fresh lower low following its previous 50.00 centreline test at the beginning of 2023, this could be a sign that upside momentum may be stronger at this point.
All in all, the monthly chart leans in favour of buyers now, according to the above studies.
Daily Confluence Eyed
In terms of the daily timeframe, we can see that following a rejection of resistance at $0.6865, the correction (the daily timeframe has been trending higher since November last year [also, note that the 50-day SMA is poised to cross above its 200-day SMA – Golden Cross, which is a long-term bullish trend signal]) could be viewed as a dip-buying opportunity from support at $0.6659.
Complementing the aforementioned base is a moderate Fibonacci cluster (38.2% and 61.8% Fibonacci retracements) and channel support taken from the low of $0.6339. Further adding to this is the daily chart’s RSI offering up a potential bullish divergence signal (positive hidden divergence).
The AUD/USD technical space is chalking up an interesting picture.
From the longer-term monthly scale, you will note that price recently recoiled from the lower edge of a symmetrical triangle (or coil) drawn from the low of $0.5506 and engulfed a neighbouring descending resistance taken from the high of $0.7661. Technically, this places bulls in the driving seat for now and opens the door to not only local tops around $0.6895 but also the upper boundary of the coil pattern extended from the high of $0.8007.
While price action suggests bulls could continue to navigate higher prices, the monthly chart’s Relative Strength Index (RSI) is testing the lower side of its 50.00 centreline. However, knowing the indicator failed to push through a fresh lower low following its previous 50.00 centreline test at the beginning of 2023, this could be a sign that upside momentum may be stronger at this point.
All in all, the monthly chart leans in favour of buyers now, according to the above studies.
Daily Confluence Eyed
In terms of the daily timeframe, we can see that following a rejection of resistance at $0.6865, the correction (the daily timeframe has been trending higher since November last year [also, note that the 50-day SMA is poised to cross above its 200-day SMA – Golden Cross, which is a long-term bullish trend signal]) could be viewed as a dip-buying opportunity from support at $0.6659.
Complementing the aforementioned base is a moderate Fibonacci cluster (38.2% and 61.8% Fibonacci retracements) and channel support taken from the low of $0.6339. Further adding to this is the daily chart’s RSI offering up a potential bullish divergence signal (positive hidden divergence).
Note
Quick update - price reacted from noted daily support, following NFP data...
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