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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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
Latest articles
Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility
October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the
Market Analysis: The American Currency Resumes Growth
The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast
EUR/USD Analysis: The Rate Updates Its Multi-month Low
Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are