AUD/USD bounces off intraday low, also the lowest since October 01, heading into Tuesday’s European session. Even so, the Aussie pair prints a three-day downtrend around 0.7220 by the press time.
The quote’s latest rebound could be linked to the nearly oversold RSI conditions and a lower line of the 13-day-old falling wedge chart pattern.
It should be noted, however, that the quote’s sustained trading below an ascending support line from August, now resistance around 0.7265, keeps the AUD/USD bears hopeful of breaking the nearby support of 0.7205.
Following that, September’s low of 0.7169 may entertain the sellers before the likely corrective pullback considering the RSI conditions. Should the quote refrain from bouncing off 0.7169, the yearly low marked in August around 0.7105 will be in focus.
Meanwhile, 61.8% Fibonacci retracement level of August-October upside around 0.7280 precedes the stated wedge’s resistance line, near 0.7305, to restrict short-term advances of the AUD/USD prices.
In a case where the Aussie pair confirms the bullish chart pattern by crossing the 0.7305 hurdle, a convergence of the 100-DMA and the 50-DMA surrounding 0.7350-55 will be crucial to watch.
Trend: Further downside expected
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.