FXOpen
The Australian Dollar (AUD) extended downside movement against the US Dollar (USD) on Friday, dragging the price of AUDUSD to less than 0.7650 after the emergence of a bearish engulfing candle on the daily chart. The technical bias already remains bearish because of a Lower Low in the recent downside move.
Technical Analysis
As of this writing, the pair is being traded near 0.7624. A support may be found around 0.7600, the psychological number ahead of 0.7567, a key horizontal support and then 0.7500, the confluence of the psychological number as well as the major horizontal support area as demonstrated in the given below daily chart.
On the upside, the pair is expected to face a hurdle near 0.7644, a major horizontal resistance area ahead of 0.7667, the 50% retracement of the yesterday’s daily candle and then 0.7732, the swing high of the latest major upside rally. The technical bias will remain bearish as long as the 0.7732 resistance area is intact.
Yellen’s Remarks
Federal Reserve Chair Janet Yellen made no comments on the outlook for the U.S. economic and monetary policy in brief prepared remarks on Thursday regarding the importance of diversity in the financial sector. Yellen was to deliver a speech, in which she repeated her pledge to try to make the Fed itself more diverse, at the conference of minority bankers in Kansas City on Thursday.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.
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.
Latest articles
XBR/USD Chart Analysis: Price Rebounds from a Seven-Week Low
On 1 December, we outlined a descending channel on the XBR/USD chart and noted that the bearish trend was driven by fading geopolitical risks. Indeed, hopes for an end to the war in Ukraine—along with the possibility of
Silver Price Hits Historic Record Around $64
On 27 November, we suggested that silver was preparing to challenge its all-time high. Since then (marked with the orange arrow), XAG/USD has risen by roughly 18%, breaking above the psychological $60-per-ounce threshold for the first time in history.