Key Highlights
- The Aussie Dollar moved higher this past week and broke the 0.8000 resistance against the US Dollar.
- There is a crucial ascending channel forming with current support at 0.8060 on the 4-hours chart of AUD/USD.
- The pair may continue to rise as long as it is above the 0.8000 support level.
- The US Personal Income rose 0.4% in Dec 2017, more than the forecast of +0.3%.
AUD/USD Technical Analysis
The Aussie Dollar made a nice upside move during the past few days and settled above 0.8000 against the US Dollar. The AUD/USD pair is now in a solid uptrend with supports at 0.8060 and 0.8000.
The 4-hours chart of AUD/USD clearly points to a major uptrend from the 0.7600 swing low. The pair climbed higher and broke many resistances such as 0.7800, 0.7880, 0.7900 and 0.8000.
The upside move was very strong as buyers were able to push the pair above the 0.8100 level. A new year high was formed at 0.8135 from where a downside correction was initiated. It broke the 23.6% Fib retracement level of the last wave from the 0.8004 low to 0.8135 high.
Looking at the chart, it seems like there is a crucial ascending channel forming with current support at 0.8060. On the downside, an initial support is around the 50% Fib retracement level of the last wave from the 0.8004 low to 0.8135 high at 0.8070.
Therefore, a strong support is forming around 0.8060-0.8070. Below the mentioned 0.8060, the pair may test the 0.8000 handle, which is the most important support and a buy zone.
On the upside, an initial hurdle for buyers is at 0.8135-40. Above 0.8140, the pair may accelerate towards the 0.8200 level. The overall price structure is bullish as long as AUD/USD is above 0.8000.
In general, the recent rise in AUD/USD is linked to the US Dollar weakness. Other major pairs such as EUR/USD and GBP/USD also gained heavily. However, there are now signs of trend exhaustion and traders need to be careful chasing this rally going forward.
