AUD/USD. Trading on the 50 Day Exponential Moving Average. - 10/01/2019

Micro Analysis

10 January, 2019

For General Information only. Not Intended to Provide Trading or Investment Advice. Your Capital is at Risk.

Technical Outlook: From a technical perspective, the AUD/USD seems to have re-gained strength to break above 0.7200, especially if one particularly focuses on the 50 day Exponential Moving Average. The daily chart below shows that recently the 50 day Exponential Moving Average has been very good guidance acting as both, resistance and support. In fact, the 50 day Exponential Moving Average has acted as strong resistance in the third quarter of 2018 and decent support in the fourth quarter of 2018. The AUD/USD has recently breached above the 50 day Exponential Moving Average, sending a bullish signal to the markets. If the pattern lives up to its expectations, the AUD/USD could be expected to break soon above 0.72 and target its December 13 high of 0.72475 (Resistance 1). The Daily Relative Strength Index has also remained bullish as the index has recently bounced off its oversold threshold of 30 to break above the level of 50 (bullish territory).

If, however, the AUD/USD fails to break above 0.72, the pair could retreat back below the Pivot point of 0.71649 and, moreover, the 50 day Exponential Moving Average, which could further send the AUD/USD down to Support 1 of 0.71072.

Pivot Point:

0.71649

Resistance 3:

0.73938

Resistance 2:

0.73226

Resistance 1:

0.72475

Support 1:

0.71072

Support 2:

0.70440

Support 3:

0.69926


Graph: (AUD/USD, Daily)

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