AUD/USD vulnerable at 0.8821 as downside risk accelerates

FXOpen

AUD/USD on Tuesday once again failed to break 0.8821, a key resistance level, on third consecutive day, thus repeated rejection from the same level shows the vulnerability of the pair.

At the moment of writing in Asian session Aussie Dollar is being traded at 0.8804 against the greenback. Immediate resistance is shown at 0.8821, 38.2% fib level ahead of very crucial hurdle around 0.8871 which is 50% fib level as well as confluence zone of 100 and 200 Moving Averages on four hours timeframe.

AUD/USD vulnerable at 0.8821 as downside risk accelerates

On downside, support is noted around 0.8758 ahead of 0.8751 that is also a confluence of moving averages on hourly timeframe. Commodity Channel Index (CCI) is in oversold territory on hourly and four hours timeframe which means a correction might be ended here and pair may resume downtrend in near future. Negative divergence may also be noted with MACD. Relative Strength Index (RSI) is however showing neutral readings.

AUD/USD is headed towards 50% fib level of entire move from 2008 to 2011. 50% retracement is sitting in around 0.8536. Reserve Bank of Australia (RBA) recently voiced concerns about overvalued Australian currency and hinted intervention in open market that in turn trigger a sharp sell-off in Aussie Dollar. The pair has also completed Head & Shoulder (H&S) price pattern which was obvious on daily chart. It is very likely that the ongoing downtrend may halt after price hits 50% fib level.

It is to be noted that the US Federal Reserve’s interest rate as well as asset purchase decision is due today in the US evening session. No change in interest rate is likely but pace of bonds buying may reduce by $10 billion according to median estimate of analysts. The central bank had already taper asset purchase program by $10 billion in December monetary policy meeting.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

An Important Bullish Pattern Forms on the NIO Share Price Chart
Shares

An Important Bullish Pattern Forms on the NIO Share Price Chart

Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April,

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season
Indices

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season

Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% 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.