Bearish Reversal In Aussie Dollar As Yellen Speaks

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.

Bearish Reversal In Aussie Dollar As Yellen Speaks

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.

Latest from Forex Analysis

Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week

Latest articles

Shares

5 Stocks To Consider in March 2024

Here we are, beginning the last month of the first quarter of 2024, which has passed by in somewhat of a flash. Perhaps the apparent speed at which the spring is approaching can be attributed to what appears to be

Commodities

WTI Oil Price Reaches 4-month High against the Backdrop of OPEC+ Decision

On Friday, the price of a barrel of WTI crude oil exceeded USD 80 per barrel due to the decision to continue the policy of reducing oil production by OPEC+ countries. Saudi Arabia said on Sunday it would extend oil

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on

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. 65.68% 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.