HomeContributorsTechnical AnalysisAUDUSD Extends Uptrend To 34-Month High

AUDUSD Extends Uptrend To 34-Month High

AUDUSD has been in a strong bullish rally since March 2020, sending the price to a new 34-month high of 0.7827 on Wednesday.

The MACD oscillator is extending its upside move above its trigger line in the positive region, however, the RSI is turning south in the overbought area, suggesting a downside pullback in the price.

An advance above the multi-month high of 0.7827 could send the pair towards the 0.7923 resistance, taken from the peak on March 2018. Clearing this region, the high from January 2018 at 0.8132 could next attract investors’ attention.

On the other side, a bearish retracement could meet the 20-day simple moving average (SMA) around 0.7620 ahead of the 40-day SMA at 0.7475. If selling interest persists, support could come from the 0.7340 level and then from the 23.6% Fibonacci retracement level of the up leg from 0.5506 to 0.7827 at 0.7270. Even lower, the 200-day SMA around the 0.7000 psychological mark could act as a significant barrier to the bears.

Overall, in the long-term picture, AUDUSD continues to follow an uptrend, keeping sentiment positive. A decisive close below the 200-day SMA may shift the outlook to neutral.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading